Weak Judiciary Could Undermine Investor Confidence in Nigeria’s Capital Market

Tobi Adebayo
4 Min Read
Weak Judiciary Could Undermine Investor Confidence in Nigeria’s Capital Market

Speaking through his Special Adviser on Economic Affairs, Dr. Tope Fasua, at the 2025 Judges’ Workshop organized by the Securities and Exchange Commission (SEC) in Abuja, Shettima stressed that the strength of Nigeria’s legal system plays a pivotal role in shaping investor confidence.


Capital Market Needs More Than Just Rules  It Needs Justice

According to the Vice President, a thriving capital market is not just about numbers and trades  it serves as the engine of national development, funding infrastructure, supporting small businesses, driving innovation, and reducing reliance on oil.

Shettima said:

“No investor will put money where their rights aren’t protected or where justice is delayed. The success of our capital market depends heavily on trust  and that trust is built on fairness, transparency, and judicial efficiency.”

He emphasized that the judiciary must deliver judgments that are timely, consistent, and grounded in financial literacy. Any cracks in the system, he warned, could open the door to risks that drive investors away.


ADR: A Smarter Way to Handle Financial Disputes

To reduce legal bottlenecks, Shettima called on the judiciary to promote Alternative Dispute Resolution (ADR) tools like arbitration and mediation, especially for technical financial matters.

“While litigation remains valid,” he said, “ADR options can offer quicker, more specialized outcomes that reduce the pressure on courts and better reflect the complexities of modern finance.”


New Law Brings Fresh Energy to the Market

SEC Director-General, Dr. Emomotimi Agama, highlighted the recently passed Investments and Securities Act (ISA) 2025 as a bold step toward overhauling market regulations. The new law introduces tougher penalties for fraud, better corporate governance standards, and faster conflict resolution procedures.

Agama noted:

“ISA 2025 marks a new era. It reinforces trust, improves transparency, and strengthens Nigeria’s position on the global investment map.

AIHS 2025 – A Global Gathering Redefining Africa’s Housing Future
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He also explained that the Judges’ Workshop was designed to ensure legal officers fully understand and properly interpret the new law — a critical step, since court decisions set lasting precedents that affect investor behavior.


Judiciary Must Keep Pace with Market Changes

Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun, represented by Supreme Court Justice Stephen Adah, reminded attendees that Nigeria’s capital market is no longer a theoretical concept — it’s now a real platform for financial empowerment.

She encouraged the judiciary to evolve with changing realities like digital assets, green financing, and global financial innovations, while still upholding the rule of law.


EFCC Targets Ponzi Schemes and Digital Fraud

In a related address, EFCC Chairman, Mr. Olanipekun Olukoyede, revealed that 58 unauthorized businesses running pyramid schemes have been charged to court, with several convictions already secured. He warned that digital asset scams are becoming more sophisticated, and urged judges to stay updated with financial crime trends.

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