By Kehinde Ibrahim, Lagos
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele has proposed the establishment of a specialised Commercial Dispute Resolution Tribunal to accelerate the resolution of business disputes, describing judicial delays as a major impediment to investment and capital market growth in Nigeria.
Oyedele made the proposal on Tuesday while delivering his inaugural lecture as a Fellow of the Capital Market Academics of Nigeria, CMAN), during the association’s Second Biennial Conference in Abuja.
The conference, themed “The Nigerian Capital Market as a Catalyst for Equitable and Inclusive Growth,” brought together policymakers, regulators, academics and financial market stakeholders to examine strategies for strengthening Nigeria’s investment climate.
According to the minister, lengthy court processes have continued to discourage both domestic and foreign investors, with commercial cases taking an average of 15 years to progress through the High Court, Court of Appeal and the Supreme Court.
He noted that such delays create significant uncertainty for businesses, increase the cost of transactions and weaken investor confidence in the country’s legal and regulatory environment.
To address the challenges, Oyedele proposed the creation of a dedicated Commercial Dispute Resolution Tribunal staffed by judges and arbitrators with specialised expertise in commercial, financial and capital market matters.
He said that the tribunal should leverage digital case management systems, technology-driven proceedings and mandatory timelines to ensure the speedy determination of disputes involving businesses, suppliers, investors, joint venture partners and other commercial entities.
According to him, the proposed tribunal would complement existing investment protection mechanisms by providing a more efficient platform for resolving commercial disagreements that often stall investments and undermine economic growth.
He stressed that virtually every financial instrument—including bonds, syndicated loans, structured notes and private placements—is anchored on enforceable contracts, making efficient dispute resolution indispensable to the development of a vibrant capital market.
Beyond judicial reforms, the minister urged Nigerians to adopt a more balanced perspective on public borrowing, arguing that debt should be assessed based on its purpose, cost and expected economic returns rather than its overall size.
He maintained that borrowing is not inherently detrimental to an economy when the funds are channelled into productive investments capable of generating returns that exceed the cost of financing.
Oyedele criticised the tendency to condemn every instance of government borrowing without evaluating whether such borrowing is financing infrastructure and other productive assets capable of stimulating economic growth.
He argued that governments and businesses that borrow to invest in projects yielding returns above their cost of capital are making rational financial decisions, adding that avoiding borrowing under such circumstances could amount to foregoing valuable development opportunities.
According to him, retaining full ownership of a small enterprise often creates less value than holding a substantial stake in a larger, well-capitalised company capable of attracting investment and expanding operations.
He further outlined what he described as the ‘seven laws of capital attraction,’ emphasising that investors are primarily influenced by trust, policy consistency, institutional strength and the rule of law rather than generous tax incentives.
The Minister added that long-term investment naturally flows to countries with credible institutions, including an independent judiciary, a reliable central bank and an efficient public bureaucracy, rather than depending solely on political leadership.
The minister also urged government officials, professionals and the media to improve communication around economic reforms, arguing that Nigeria often suffers from a ‘perception premium’ since positive policy initiatives are not effectively communicated to investors.
He maintained that sustainable capital inflows required not only sound macroeconomic policies but also stronger institutions, consistent regulations, efficient justice delivery and a shift in public attitudes toward debt financing and private investment.
The Director-General of the Securities and Exchange Commission, Emomotimi Agama called for stronger collaboration between regulators and academia to promote evidence-based policymaking and strengthen Nigeria’s capital market.
Agama described the Capital Market Academics of Nigeria as an important bridge between academic research and financial market regulation, noting that quality research remains critical to developing effective regulatory policies.
He explained that research generated through academic conferences, peer-reviewed journals and scholarly studies provides the foundation for policies capable of responding to the changing dynamics of Nigeria’s financial markets.
Agama noted that Nigeria’s capital market is undergoing significant reforms following the enactment of the Investments and Securities Act 2025 and the implementation of a new 10-year Capital Market Master Plan.
The President of the Capital Market Academics of Nigeria, Uche Uwaleke advocated stronger collaboration between academia and the financial services industry to deepen Nigeria’s financial markets and support economic development.
Uwaleke said that Nigeria possesses substantial academic expertise and practical experience within its financial sector but lacks a structured framework to effectively connect both for national development.
He urged the Federal Ministry of Education and the National Universities Commission to recognise relevant industry experience alongside academic publications in the appointment and promotion of lecturers in professionally oriented disciplines such as Banking, Finance, Insurance, Accounting and Capital Market Studies.
He also recommended that universities recruit accomplished retired bankers, investment professionals and capital market practitioners as adjunct lecturers to improve curriculum relevance and better prepare graduates for the demands of the workplace.
