Fed Govt Calls for Innovative Capital Market Dispute Resolution
By Patience Ikpeme
The federal government has urged the judiciary to develop new methods for resolving disputes within the capital market, recognizing it as much more than just a platform for buying and selling securities.
This appeal was made in Abuja on Monday by Vice President Senator Kashim Shettima, represented by Dr. Tope Fasua, Special Adviser to the President on Economic Affairs.
The occasion was the 2025 Capacity Building Interactive Workshop on Capital Market Law, Ethics, and Judicial Interpretations for Judges of Superior Courts, organized by the Securities and Exchange Commission (SEC).
Vice President Kashim Shettima stated, “I urge you to explore innovative approaches to dispute resolution in the capital market. The capital market is far more than just a platform for buying and selling securities.”
He added that the capital market “is a critical tool for diversifying our economy away from over-reliance on a single commodity, fostering indigenous industrialization, and attracting both domestic and foreign direct investments.”
A well-functioning capital market, he said, “can unlock latent wealth, deepen financial inclusion, and ultimately improve the living standards of our citizens. It is the conduit through which national savings are channeled into productive ventures, driving the wheels of progress and prosperity.”
Shettima further explained that “the effectiveness of any capital market hinges on one fundamental, non-negotiable element: trust. Investors, whether local or international, institutional or retail, will only commit their hard-earned capital where they are confident that their investments are secure, that transactions are transparent, and that their rights are protected.”
He added that this confidence is built on a foundation of strong regulatory frameworks, efficient market operations, and, crucially, an effective and impartial system of dispute resolution.
The federal government, he disclosed, is “also actively promoting alternative dispute resolution (ADR) mechanisms, such as mediation and arbitration. These can offer faster, more cost-effective, and often more specialized avenues for resolving commercial disputes, including those arising in the capital market.
While litigation remains a crucial option, fostering a culture of ADR can significantly reduce the burden on our courts and provide flexible solutions tailored to the unique dynamics of financial transactions.”
He cautioned that “Any perceived weakness in our dispute resolution framework can deter potential investors, diverting capital to more attractive jurisdictions. In addition, delays, inconsistencies, or a lack of specialized understanding can inadvertently create systemic risks and deter investment.”
This workshop, he noted, is not merely about updating knowledge; it is about providing judges with the specialized insights necessary to navigate the complexities of capital market disputes. It aims to foster a deeper understanding of the economic implications of judicial decisions and strengthen the cooperation between the regulatory framework and judicial enforcement. He described the judiciary’s commitment to continuous learning and adaptation as commendable and vital for the nation’s progress.
The repositioning of the Nigerian capital market, the Vice President pointed out, “is not just an economic aspiration; it is a national imperative. It is about creating opportunities, fostering wealth creation, and building a more prosperous future for all Nigerians. The judiciary, through its commitment to effective and impartial dispute resolution, holds a powerful key to unlocking this potential.”
He affirmed that this administration is fully dedicated to strengthening the Nigerian capital market and enhancing the efficiency of its justice delivery system. “We recognize that a strong judiciary is fundamental to a thriving economy and a stable democracy. We are dedicated to supporting initiatives that promote judicial independence, enhance judicial capacity, and improve access to justice for all citizens,” he stated.
Shettima stated, “Our commitment extends to providing the necessary resources and an enabling environment for institutions like the Securities and Exchange Commission to effectively discharge their mandate.” He expressed his expectation that the workshop would enhance judicial capacity by deepening understanding of complex capital market transactions, securities laws, and regulatory frameworks.
It is also expected to promote greater consistency and predictability in judicial pronouncements on capital market matters, facilitate collaboration between the judiciary, the SEC, and other relevant stakeholders, identify bottlenecks hindering efficient dispute resolution, and propose practical solutions. Ultimately, the workshop aims to build greater investor confidence in the Nigerian capital market, both locally and internationally.
In her keynote address, Honourable Justice Kudirat M. O. Kekere-Ekun, Chief Justice of Nigeria and Chairman, Board of Governors, stated that the judiciary must acknowledge the emergence of new financial frontiers. These include digital assets, cryptocurrency transactions, green financing instruments, and transnational securities.
“These developments often outpace the tools of traditional adjudication. It is not sufficient to apply existing principles without adaptation; nor must we yield to the illusion that novelty negates precedent. Instead, we must engage with these issues in a manner that preserves legal consistency while remaining responsive to evolving commercial realities,” she said.
The Chief Justice added that the recent enactment of the Investments and Securities Act, 2025, is a welcome development, as its provisions offer improved regulatory clarity and investor protection mechanisms. “But even the most sophisticated laws remain inert without informed and purposive interpretation. Our task, therefore, is to breathe life into these statutory instruments and to give them meaning that aligns with legislative intent, commercial logic, and ethical consciousness,” she explained.
To the judges present, Justice Kekere-Ekun stated that “the decisions we render in capital market disputes reverberate beyond the courtroom; they shape public confidence, influence investor behavior, and impact the stability of financial institutions.”
Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), stated that “this Workshop is part of the firm commitment of SEC to a deeper engagement with all stakeholders, ensuring that the provisions of the ISA 2025 are widely disseminated, discussed and fully understood, in order to achieve our goals in restoring investors confidence, bringing timely succour to aggrieved investors and creating a broad-based participation of Nigerians in wealth creation.”
He concluded that the ISA 2025 “represents a significant evolution in the regulation of the capital market by introducing a number of significant elements,” including stricter penalties for market abuse (such as manipulation and false disclosures), enhanced corporate governance standards for listed companies, and new dispute resolution mechanisms to speed up justice.
