Nigeria’s Finance Minister Proposes Specialized Commercial Dispute Tribunal to Accelerate Capital Market Development

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has proposed the establishment of a specialized Commercial Dispute Resolution Tribunal to expedite the resolution of business conflicts and drive growth in Nigeria’s capital market.

Speaking during his inaugural lecture as a Fellow of the Capital Market Academics of Nigeria (CMAN) at the association’s Second Biennial Conference in Abuja, Oyedele emphasized that swift justice delivery is crucial for attracting long-term investment and deepening financial markets.

The conference, themed “The Nigerian Capital Market as a Catalyst for Equitable and Inclusive Growth,” highlighted the challenges posed by prolonged litigation. Oyedele noted that commercial cases currently take an average of 15 years to conclude through the High Court, Court of Appeal, and Supreme Court, creating uncertainty, deterring investors, and increasing the cost of doing business.

To address this, he proposed a dedicated tribunal staffed with judges and arbitrators possessing specialized expertise in commercial, financial, and capital market matters. The tribunal would feature digital case management systems and mandatory timelines to ensure rapid resolution of disputes involving businesses, suppliers, joint venture partners, and other commercial entities.

Oyedele explained that the initiative would complement existing investment protection mechanisms, providing a more efficient avenue for resolving commercial disagreements that often delay investments and erode investor confidence. He pointed out that virtually all financial instruments—including bonds, syndicated loans, private placements, and structured notes—are founded on enforceable contracts, making swift dispute resolution essential for capital market growth.

Beyond judicial reforms, the minister advocated for a revised public perception of borrowing, arguing that debt should be evaluated based on its purpose rather than its volume. He maintained that borrowing is a financial tool that can support economic growth when channeled into productive investments generating returns above the cost of capital.

Oyedele criticized the tendency to uniformly condemn government borrowing without assessing whether funds are directed toward projects capable of generating sustainable economic returns. He warned that refusing to borrow under such conditions could mean forgoing valuable development opportunities.

The minister also urged Nigerian entrepreneurs to reconsider their resistance to external investors, noting that owning 100% of a small enterprise often creates less value than holding a substantial stake in a larger, well-capitalized company.

Earlier, SEC Director-General Dr. Emomotimi Agama called for strengthened collaboration between regulators and academics, emphasizing that research-driven policymaking is vital for bolstering Nigeria’s capital market and fostering inclusive economic growth. He described CMAN as a critical link between academic research and financial market regulation.

Agama stated that the SEC’s policies derive strength from evidence and ideas, adding that academic research provides the foundation for regulation capable of addressing evolving market needs. He highlighted ongoing reforms following the enactment of the Investments and Securities Act 2025 and the implementation of a new 10-year Capital Market Master Plan.

Prof. Uche Uwaleke, President of CMAN, advocated for closer partnerships between academia and the financial services industry to deepen Nigeria’s financial markets. He called on the Federal Ministry of Education and the National Universities Commission to recognize industry experience alongside academic publications in lecturer appointments and promotions.
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