Vice President Kashim Shettima on Monday warned that a weak and inefficient judiciary could derail Nigeria’s ambition of building a vibrant and trustworthy capital market capable of attracting long-term investments and driving economic transformation.

Speaking through his Special Adviser on Economic Affairs, Dr Tope Fasua, at the 2025 Judges’ Workshop organised by the Securities and Exchange Commission in Abuja, Shettima emphasised that the judiciary plays a critical role in maintaining investor confidence through timely, fair, and technically sound resolutions of disputes.

The event, themed “Repositioning the Nigerian Capital Market for National Economic Transformation through Effective Dispute Resolution,” brought together justices, regulators, legislators and financial experts to examine the judiciary’s role in capital market stability.

According to Shettima, the capital market is more than a trading platform—it is the backbone of modern economies, enabling infrastructure financing, SME growth, innovation, and national development.

He said the Nigerian market holds even greater significance as a vehicle for diversifying the economy away from oil dependence, promoting indigenous industrialisation, and deepening financial inclusion.

“The effectiveness of any capital market hinges on one fundamental, non-negotiable element: trust. Investors, whether local or international, institutional or retail, will only commit their hard-earned capital where they are confident that their investments are secure, that transactions are transparent, and that their rights are protected.

“This confidence is built on a foundation of strong regulatory frameworks, efficient market operations, and, crucially, an effective and impartial system of dispute resolution,” he said.

He warned that delays, inconsistent judgments, and a lack of specialist knowledge could create systemic risks that discourage both local and international capital.

To address these concerns, he called for the adoption of alternative dispute resolution mechanisms such as mediation and arbitration, noting that they offer quicker and more tailored solutions for complex financial cases.

“While litigation remains a crucial option, fostering a culture of ADR can significantly reduce the burden on our courts and provide flexible solutions tailored to the unique dynamics of financial transactions,” Shettima said, urging judges to deliver verdicts that inspire market confidence.

Director-General of the SEC, Dr. Emomotimi Agama, described the recently enacted Investments and Securities Act 2025 as a landmark reform that introduces stricter penalties for market abuse, new governance standards for listed firms, and faster dispute resolution tools.

He noted that the legislation would reinforce investor confidence, modernise Nigeria’s regulatory framework, and improve the country’s global market position.

“The ISA 2025 is a legislative success, a legal milestone and a reform that ushers in a new era for our capital market,” Agama said. “By enacting this progressive law, Nigeria has taken a bold step toward fostering a more transparent, efficient, resilient and secure investment climate.”

He said the workshop was part of the Commission’s efforts to ensure that provisions of the new law are fully understood by judicial officers, regulators and stakeholders.

Agama added that the judiciary’s interpretation of the reforms will set legal precedents that shape market behaviour for years.

Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun, who was represented by Justice of the Supreme Court, Justice Stephen Adah, said the capital market was no longer a distant abstraction but a vital platform of economic empowerment.

She highlighted the growing complexity of financial markets, including digital assets and green finance, and called on the judiciary to adapt to the demands of modern finance without discarding the need for legal precedent.

Chairman of the Economic and Financial Crimes Commission, Mr Olanipekun Olukoyede, disclosed that 58 unlicensed businesses running pyramid schemes had been charged to court, with some convictions already secured.

He said the complexity of digital asset fraud demands that judges continually update their knowledge.

The workshop served as a platform to align judicial, regulatory and legislative efforts toward strengthening the legal foundation of Nigeria’s capital market.