FG Promoting Alternative Dispute Resolution Mechanisms For Capital Market, Others -Shettima
By Sunday Etuka, Abuja
The Vice President, Senator Kashim Shettima has stated that the Federal Government is actively promoting alternative dispute resolution (ADR) mechanisms, such as mediation and arbitration for faster and more cost-effective resolution of commercial disputes, including those arising in the capital market.
Senator Shettima spoke on Monday at a Two-Day Workshop on Capital Market Law, Ethics and Judicial Interpretations for Judges, with the theme, Repositioning the Nigerian Capital Market for National Economic Transformation through Effective Dispute Resolution,” held in Abuja.
Organized by the Securities and Exchange Commission (SEC), the workshop was designed to equip the judicial officers with the requisite knowledge on how to navigate the increasing complexity of the Nigerian capital market for the protection of investors.
Speaking, the Vice President explained that while litigation remains a crucial option, fostering a culture of ADR could significantly reduce the burden on the nation’s courts and provide flexible solutions tailored to the unique dynamics of financial transactions.
He noted that the government’s commitment extends to providing the necessary resources and an enabling environment for institutions like the SEC to effectively discharge their mandate.
“We are working to improve the ease of doing business, attract foreign investment, and create a more competitive economic landscape. A key component of this effort is ensuring that our legal and judicial infrastructure is robust enough to support a sophisticated financial market,” he added.
Represented by the Special Adviser to the President on Economic Affairs, Office of the Vice President, Dr. Tope Fasua, Shettima said a robust, efficient, and trustworthy capital market is the bedrock upon which sustainable national economic transformation could be built, noting that the capital market is far more than just a platform for buying and selling securities.
“It is the lifeblood of modern economies, a sophisticated ecosystem that mobilizes long-term capital for productive investments. It connects savers with investors, providing the necessary liquidity for businesses to expand, innovate, and create jobs. It is where infrastructure projects find funding, where small and medium enterprises (SMEs) can scale, and where the dreams of entrepreneurs can take flight,” he said.
The VP said a well-functioning capital market could unlock latent wealth, deepen financial inclusion, and ultimately improve the living standards of the citizens. “It is the conduit through which national savings are channeled into productive ventures, driving the wheels of progress and prosperity,” he added.
Shettima underscored the need for trust in the capital market as investors, whether local or international, institutional or retail, would 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.
This confidence, according to him, is built on a foundation of strong regulatory frameworks, efficient market operations, and, crucially, an effective and impartial system of dispute resolution.
While stating that disputes are inevitable in the capital market, as they could arise from various sources such as contractual breaches, market manipulation, insider trading, corporate governance infractions, or disagreements over interpretation of securities laws, the VP said what truly matters is how swiftly, fairly, and expertly they are resolved.
He highlighted that an effective dispute resolution system in the capital market must possess several key characteristics, including Speed, Expertise, Fairness and Impartiality, Enforceability, and Predictability.
“When these characteristics are present, the dispute resolution system acts as a powerful enabler of market growth. It assures investors that their rights are protected, encourages compliance with regulations, and ultimately reduces the cost of doing business in the market. Conversely, a weak or inefficient system can breed uncertainty, discourage investment, and undermine the very fabric of market integrity,” Shettima said.
He said as the ultimate arbiters of justice, the guardians of the rule of law, and the final bulwark against impunity, the capital market, like any other sector, relies heavily on the judiciary to interpret and enforce its laws and regulations.
He assured that the administration is fully committed to strengthening the Nigerian capital market and enhancing the efficiency of the nation’s 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 said.
In his remarks, the Director-General, SEC Nigeria, Dr. Emomotimi Agama said the workshop was part of the Commission’s objective of engaging the Judiciary in all aspects of capital market operations especially on the specialized law, regulations and ethics upon which market integrity heavily relies on.
“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 added.
The DG commended President Bola Tinubu and the National Assembly for the successful passage and signing into law of the Investments and Securities Act, 2025.
He said the landmark legislation marks a significant milestone in Nigeria’s economic and financial sector, reinforcing investor confidence, strengthening regulatory frameworks and enhancing the nation’s position in global markets.
“The ISA 2025 is a legislative success, a legal milestone and a reform that ushers in a new era for our capital market. By enacting this progressive law, Nigeria has taken a bold step toward fostering a more transparent, efficient, resilient and secure investment climate.
“The diligent efforts of the Executive and Legislative arms in ensuring the seamless passage of this Act reflect a shared commitment to economic growth, financial stability and sustainable development,” he said.
Earlier, in his welcome address, the Administrator of the National Judicial Institute (NJI), Hon. Justice Salisu Abdullahi said the increasing complexity of the Nigerian capital market, coupled with the pace of innovation and the need for investor protection, necessitates that judicial officers remain not only informed, but equipped to respond with clarity, confidence, and commercial awareness.
He reaffirmed the crucial importance of continuing judicial education, saying that as the nation’s foremost institution for judicial learning, the National Judicial Institute remains committed to advancing the frontiers of knowledge through programmes that are relevant, rigorous, and forward-looking.
