⚖️ Justice Meets Capital: FG Backs Alternative Dispute Resolution to Boost Investor Confidence
The Federal Government is calling for a modernised approach to handling legal disputes in Nigeria’s capital market. At the forefront of this push is the advocacy for faster, more efficient mechanisms like arbitration and mediation, aimed at reinforcing investor trust and deepening market participation.
Vice President Senator Kashim Shettima, represented by Dr. Tope Fasua, Special Adviser to the President on Economic Affairs, made this known during the 2025 Capital Market Law and Ethics Workshop for Judges of Superior Courts, hosted by the Securities and Exchange Commission (SEC) in Abuja.
Capital Market: More Than a Trading Platform
Describing the capital market as a “pillar for economic transformation,” Shettima stressed that it is key to Nigeria’s journey toward economic diversification. He noted that the market channels savings into productive use, drives local industrialisation, and acts as a magnet for foreign and domestic investors alike.
“A well-functioning capital market can unlock latent wealth, deepen financial inclusion, and ultimately improve living standards,” he said.
But Shettima warned that this potential relies heavily on investor trust, which is directly tied to strong regulation, transparent transactions, and—most critically—a dependable system for dispute resolution.
⚖️ ADR: A Smarter Way to Resolve Disputes
The Vice President advocated for the increased use of Alternative Dispute Resolution (ADR) tools like mediation and arbitration. These mechanisms, he argued, are faster, more cost-effective, and more suited to the complexities of modern finance than prolonged litigation.
“Weaknesses in our dispute resolution framework risk diverting capital elsewhere,” Shettima warned. “Delays and inconsistent judgments can scare away investors.”
He urged Nigeria’s judiciary to view the workshop not merely as training, but as a crucial bridge between economic growth and judicial efficiency.
⚖️ Judiciary’s Vital Role in Economic Stability
Also speaking at the event, Chief Justice of Nigeria, Hon. Justice Kudirat Kekere-Ekun (represented by Justice Stephen Adah), highlighted how evolving financial products like digital assets, green finance, and cross-border securities demand a fresh legal lens.
She called for a balance between legal tradition and innovation, stressing that judges must understand the real-world impact of their rulings.
“The decisions we make in capital market cases shape public confidence, guide investor behaviour, and affect financial system stability,” she said.
She praised the enactment of the Investments and Securities Act (ISA) 2025, which strengthens investor protection and promotes timely resolution of disputes. But she cautioned: “Even the best laws need thoughtful, economically aware interpretation.”
SEC’s Commitment to Market Reform
According to SEC DG Dr. Emomotimi Agama, the workshop was part of the regulator’s efforts to ensure the judiciary fully understands the ISA 2025 reforms, which include:
• ️ Stricter penalties for market misconduct
• Enhanced governance standards for listed firms
• ⚖️ Faster dispute resolution pathways
• Increased collaboration with the judiciary
“Through these reforms, we hope to restore investor confidence and encourage broader participation of Nigerians in wealth creation,” Agama said.
Why This Matters
• Investor trust is the currency of the capital market.
• Delays in dispute resolution can threaten Nigeria’s competitiveness in attracting long-term capital.
• By embracing ADR and building judicial expertise in capital market laws, Nigeria can transform legal bottlenecks into economic enablers.
✍ Final Word
Repositioning the Nigerian capital market isn’t just about economic numbers—it’s about justice, trust, and leadership. With a strong legal foundation, backed by proactive reforms and judicial collaboration, Nigeria stands a better chance of unlocking the full power of its capital markets.
The Federal Government is calling for a modernised approach to handling legal disputes in Nigeria’s capital market. At the forefront of this push is the advocacy for faster, more efficient mechanisms like arbitration and mediation, aimed at reinforcing investor trust and deepening market participation.
Vice President Senator Kashim Shettima, represented by Dr. Tope Fasua, Special Adviser to the President on Economic Affairs, made this known during the 2025 Capital Market Law and Ethics Workshop for Judges of Superior Courts, hosted by the Securities and Exchange Commission (SEC) in Abuja.
Capital Market: More Than a Trading Platform
Describing the capital market as a “pillar for economic transformation,” Shettima stressed that it is key to Nigeria’s journey toward economic diversification. He noted that the market channels savings into productive use, drives local industrialisation, and acts as a magnet for foreign and domestic investors alike.
“A well-functioning capital market can unlock latent wealth, deepen financial inclusion, and ultimately improve living standards,” he said.
But Shettima warned that this potential relies heavily on investor trust, which is directly tied to strong regulation, transparent transactions, and—most critically—a dependable system for dispute resolution.
⚖️ ADR: A Smarter Way to Resolve Disputes
The Vice President advocated for the increased use of Alternative Dispute Resolution (ADR) tools like mediation and arbitration. These mechanisms, he argued, are faster, more cost-effective, and more suited to the complexities of modern finance than prolonged litigation.
“Weaknesses in our dispute resolution framework risk diverting capital elsewhere,” Shettima warned. “Delays and inconsistent judgments can scare away investors.”
He urged Nigeria’s judiciary to view the workshop not merely as training, but as a crucial bridge between economic growth and judicial efficiency.
⚖️ Judiciary’s Vital Role in Economic Stability
Also speaking at the event, Chief Justice of Nigeria, Hon. Justice Kudirat Kekere-Ekun (represented by Justice Stephen Adah), highlighted how evolving financial products like digital assets, green finance, and cross-border securities demand a fresh legal lens.
She called for a balance between legal tradition and innovation, stressing that judges must understand the real-world impact of their rulings.
“The decisions we make in capital market cases shape public confidence, guide investor behaviour, and affect financial system stability,” she said.
She praised the enactment of the Investments and Securities Act (ISA) 2025, which strengthens investor protection and promotes timely resolution of disputes. But she cautioned: “Even the best laws need thoughtful, economically aware interpretation.”
SEC’s Commitment to Market Reform
According to SEC DG Dr. Emomotimi Agama, the workshop was part of the regulator’s efforts to ensure the judiciary fully understands the ISA 2025 reforms, which include:
• ️ Stricter penalties for market misconduct
• Enhanced governance standards for listed firms
• ⚖️ Faster dispute resolution pathways
• Increased collaboration with the judiciary
“Through these reforms, we hope to restore investor confidence and encourage broader participation of Nigerians in wealth creation,” Agama said.
Why This Matters
• Investor trust is the currency of the capital market.
• Delays in dispute resolution can threaten Nigeria’s competitiveness in attracting long-term capital.
• By embracing ADR and building judicial expertise in capital market laws, Nigeria can transform legal bottlenecks into economic enablers.
✍ Final Word
Repositioning the Nigerian capital market isn’t just about economic numbers—it’s about justice, trust, and leadership. With a strong legal foundation, backed by proactive reforms and judicial collaboration, Nigeria stands a better chance of unlocking the full power of its capital markets.