Special Tribunal Proposed to Expedite Commercial Disputes, Bolster Investment and Capital Market Growth
Nigeria’s ability to attract long-term investment and deepen its capital market hinges critically on the efficiency of its justice system, according to Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy. Speaking at the second biennial conference of the Capital Market Academics of Nigeria (CMAN) in Abuja, Oyedele proposed the establishment of a specialised Commercial Dispute Resolution Tribunal, arguing that protracted commercial litigation currently acts as a significant impediment to both investment and economic expansion.
Oyedele highlighted that the current average duration of 15 years for commercial disputes to navigate Nigeria’s High Court, Court of Appeal, and Supreme Court system creates substantial uncertainty for investors, escalates the cost of doing business, and erodes confidence in the nation’s investment landscape. To counter this, he advocated for a dedicated tribunal staffed by judges and arbitrators possessing specialised expertise in commercial, financial, and capital market matters. This tribunal, he suggested, should be equipped with digital case management systems and mandated timelines to ensure the swift resolution of disputes involving businesses, suppliers, financiers, joint venture partners, and other commercial entities.
The minister underscored the fundamental role of enforceable contracts in all financial instruments, from bonds and syndicated loans to private placements and structured notes, asserting that efficient dispute resolution is therefore indispensable for the robust growth of Nigeria’s capital market. The proposed tribunal would serve as a complementary mechanism to existing investment protection frameworks, offering businesses a more expeditious and predictable avenue for resolving commercial disagreements that frequently lead to project delays and deter investment.
Beyond judicial reforms, Oyedele urged a re-evaluation of the perception of public borrowing, positing that debt should be assessed based on its financing purpose rather than its absolute quantum. He articulated that the pertinent question is not merely the amount of debt, but rather “debt for what, at what cost, against what return, and repayable on what terms.” He criticised the blanket condemnation of government borrowing without considering whether funds are channelled into productive investments capable of yielding returns that surpass borrowing costs. Oyedele contended that governments and businesses that borrow to finance productive assets are making rational financial decisions, and that foregoing such borrowing could result in the forfeiture of valuable development opportunities for the economy.
Furthermore, the minister addressed the prevalent entrepreneurial inclination to retain full ownership of businesses rather than seeking external investment. He argued that owning 100 per cent of a small company often generates less wealth than holding a substantial stake in a larger, better-capitalised enterprise with the capacity for rapid expansion and investment attraction.
Oyedele also outlined what he termed the “seven laws of capital attraction,” asserting that investors are primarily drawn by trust, policy consistency, credible institutions, and the rule of law, rather than solely by generous tax incentives. He emphasised that capital prioritises certainty over exceptionally high returns, cautioning that unstable policies, regulatory inconsistencies, foreign exchange volatility, and weak contract enforcement continue to act as disincentives to investment. “Capital hates uncertainty more than taxation,” he stated, adding that nations with independent judiciaries, credible central banks, and efficient public institutions are better positioned to attract sustainable long-term capital.
He also called for improved communication regarding economic reforms among government officials, professionals, and the media, noting that Nigeria continues to incur a “perception premium” due to the inadequate dissemination of positive policy developments to both domestic and international investors.
During the conference, Dr. Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC), advocated for enhanced collaboration between regulators and academics, stressing the importance of evidence-based policymaking for strengthening Nigeria’s capital market. He highlighted that research generated through academic conferences and peer-reviewed studies provides the intellectual bedrock for effective regulation capable of adapting to the evolving demands of financial markets. Agama noted that Nigeria’s capital market is currently undergoing significant reforms, including the enactment of the Investments and Securities Act 2025 and the implementation of a new 10-year Capital Market Master Plan, all of which necessitate rigorous research, constructive scrutiny, and informed public discourse. He reaffirmed the SEC’s commitment to partnering with academia to bolster investor confidence and foster sustainable market development.
Earlier, Prof. Uche Uwaleke, President of the Capital Market Academics of Nigeria, called for stronger synergy between universities, regulators, and financial institutions to deepen Nigeria’s financial markets and accelerate economic growth. He recommended that the Federal Ministry of Education and the National Universities Commission recognise industry experience alongside academic publications for the promotion of lecturers in professionally oriented disciplines, and suggested that universities recruit accomplished retired financial sector professionals as adjunct lecturers. Uwaleke also proposed structured sabbatical programmes for academics within financial sector regulatory agencies and the establishment of a national Financial Markets Research Partnership to commission policy-oriented research on capital market development, infrastructure finance, pension reforms, insurance penetration, financial inclusion, and sustainable finance. He concluded that bridging the gap between academia and industry would enhance policymaking, strengthen financial market development, and contribute to Nigeria’s long-term economic transformation.
