Nigeria’s finance minister advocates commercial dispute tribunal to unlock capital

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has proposed the establishment of a specialised Commercial Dispute Resolution Tribunal to fast-track the resolution of business disputes, arguing that faster justice delivery is critical to attracting long-term investment and deepening Nigeria’s capital market. The minister 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 was themed, “The Nigerian Capital Market as a Catalyst for Equitable and Inclusive Growth.” He said delays in resolving commercial disputes remain one of the biggest obstacles to investment, noting that cases currently take an average of 15 years to progress through the High Court, Court of Appeal and Supreme Court. According to him, such prolonged litigation creates uncertainty, discourages investors and significantly increases the cost of doing business in Nigeria. To address the challenge, the minister proposed a dedicated Commercial Dispute Resolution Tribunal staffed by judges and arbitrators with specialised expertise in commercial, financial and capital market matters. He said the tribunal should operate with digital case management systems and mandatory timelines to ensure swift resolution of disputes involving businesses, suppliers, joint venture partners and other commercial entities. The minister explained that the proposed tribunal would complement existing investment protection mechanisms by providing a more efficient avenue for resolving commercial disagreements that often delay investments and weaken investor confidence. He stressed that virtually every financial instrument—including bonds, syndicated loans, private placements and structured notes—is founded on enforceable contracts, making speedy dispute resolution essential for the growth of the capital market. Beyond judicial reforms, the minister urged Nigerians to reconsider their long-held perception of public borrowing, insisting that debt should be judged by what it finances rather than by its size. Oyedele argued that borrowing is not inherently harmful and should instead be viewed as a financial tool capable of supporting economic growth when channelled into productive investments. “The relevant question is never simply how much debt there is. It is always debt for what, at what cost, against what return and repayable on what terms,” he said. He criticised the tendency among analysts and commentators to condemn every instance of government borrowing without examining whether the funds are being invested in projects capable of generating sustainable economic returns. According to him, governments and businesses that borrow to finance productive assets yielding returns above the cost of capital are making rational financial decisions, adding that refusing to borrow under such conditions could amount to foregoing valuable development opportunities. The minister also challenged the mindset of many Nigerian entrepreneurs who resist bringing in external investors in order to retain full ownership of their businesses. He noted that owning 100 percent of a small enterprise often creates less value than holding a substantial stake in a much larger and well-capitalised company. The minister further outlined what he described as the “seven laws of capital attraction,” emphasising that investors are primarily attracted by trust, policy consistency, strong institutions and the rule of law rather than generous tax incentives. He said capital seeks predictable returns instead of merely pursuing the highest returns, warning that countries with unstable policies often lose investment to jurisdictions offering lower but more reliable returns. “Capital hates uncertainty more than taxation,” he said, attributing investor hesitation to policy reversals, regulatory inconsistencies, foreign exchange uncertainty and weak contract enforcement. According to him, investors commit long-term capital to countries with credible institutions rather than to individual political leaders. He identified an independent judiciary, a credible central bank and an efficient public bureaucracy as critical pillars for attracting sustainable investment. The minister also urged government officials, professionals and the media to improve communication around economic reforms, arguing that Nigeria often pays what he described as a “perception premium” because positive policy changes are poorly communicated to investors. He maintained that attracting long-term capital requires not only sound economic policies but also stronger institutions, policy consistency, efficient justice delivery and a shift in public attitudes towards debt and private investment. Meanwhile, Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), called for stronger collaboration between regulators and academics, saying research-driven policymaking is essential for strengthening Nigeria’s capital market and promoting inclusive economic growth. Speaking during the opening of the conference, Agama described the Capital Market Academics of Nigeria as an important bridge between academic research and financial market regulation. “I have long believed that good regulation begins with good thinking. The policies we make at the Securities and Exchange Commission are only ever as strong as the evidence and the ideas that inform them,” he said. According to him, research generated through academic conferences, journals and peer-reviewed studies provides the foundation for evidence-based regulation capable of responding to the evolving needs of Nigeria’s financial markets. He said the Commission regards academics as strategic partners whose ideas can shape policies that strengthen investor confidence and support market development. Agama noted that Nigeria’s capital market is undergoing major reforms following the enactment of the Investments and Securities Act, 2025, and the implementation of a new 10-year Capital Market Master Plan. He said the reforms require rigorous research, constructive scrutiny and honest debate to ensure that regulatory policies remain responsive to emerging realities and aligned with global best practices. The SEC chief also commended CMAN for choosing a conference theme focused on equitable and inclusive growth, describing it as timely and relevant to Nigeria’s economic development agenda. He urged participants to ensure that their deliberations produce practical recommendations capable of influencing policymaking and improving market operations. “The Commission’s door is open to evidence, to challenge and to fresh ideas, wherever they may lead. The finest measure of these two days will not be the sessions we hold, but the policies and the practices they go on to shape,” Agama said. He reaffirmed the Commission’s commitment to working closely with the academic community to advance knowledge, strengthen regulation and support the sustainable development of Nigeria’s capital market. The story has been restructured to align with the headline by leading with the proposed Commercial Dispute Resolution Tribunal, while retaining the debt, investment, and SEC remarks as supporting developments. Uche Uwaleke, president of the Capital Market Academics of Nigeria (CMAN) called for stronger collaboration between academia and the financial services industry, saying closer partnerships are essential to deepening Nigeria’s financial markets and accelerating economic growth. Uwaleke said Nigeria possesses abundant intellectual capacity within its universities and extensive practical expertise across its financial institutions, but lacks a structured framework to connect both sectors for national development. According to him, countries with resilient financial systems have succeeded by fostering continuous collaboration among universities, regulators, government agencies and industry players. He described CMAN as Nigeria’s leading financial markets think tank, established to ensure that academic research goes beyond scholarly publications to provide practical solutions to the country’s economic challenges. To bridge the gap between academia and industry, Uwaleke urged the Federal Ministry of Education and the National Universities Commission (NUC) to recognise 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 deliberately recruit accomplished retired bankers, investment professionals and capital market practitioners as adjunct lecturers to enrich teaching, strengthen curriculum relevance and better prepare graduates for the workplace. According to him, the NUC should reinforce the initiative by awarding accreditation points to academic programmes that successfully integrate experienced industry practitioners into their faculties. The CMAN president further called on financial sector regulators, including the Central Bank of Nigeria, Securities and Exchange Commission, National Insurance Commission, National Pension Commission and the Nigeria Deposit Insurance Corporation, to institutionalise structured sabbatical and research fellowship opportunities for qualified academics. He said such programmes would enable scholars to undertake policy-oriented research while giving regulators access to independent expertise capable of improving policy formulation and regulatory effectiveness. Uwaleke also proposed the establishment of a Financial Markets Research Partnership to be championed by the Federal Ministry of Finance and the Ministry of National Planning. He said the initiative should bring together regulators, universities and industry players to commission research on critical national priorities, including capital market development, infrastructure finance, pension reforms, insurance penetration, financial inclusion and sustainable finance. In addition, he appealed to the National Assembly to support policies that encourage collaboration between universities and industry through incentives for financial institutions investing in research partnerships and university-based financial market research centres. Uwaleke commended the Securities and Exchange Commission, the Bank of Industry, Cowry Asset Management Limited and the Chartered Institute of Stockbrokers for already providing sabbatical opportunities to CMAN members. He reaffirmed the association’s commitment to serving as a bridge between academia, government, regulators and industry through independent research, policy advice and intellectual support aimed at strengthening Nigeria’s financial system and driving sustainable economic transformation. Join BusinessDay whatsapp Channel, to stay up to date Open In Whatsapp