Economy
Finance Minister Advocates Commercial Dispute Tribunal for Capital Market
By Aduragbemi Omiyale
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, has proposed the establishment of a specialised Commercial Dispute Resolution Tribunal to fast-track the resolution of business disputes.
Speaking at the inaugural lecture as a Fellow of the Capital Market Academics of Nigeria (CMAN) in Abuja, Mr Oyedele argued that faster justice delivery is critical to attracting long-term investment and deepening Nigeria’s capital market.
At the event themed The Nigerian Capital Market as a Catalyst for Equitable and Inclusive Growth, the Minister noted that 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.
He pointed out that 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.
Mr Oyedele 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.
He 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.
The Minister 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, he 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.
He 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 stated, criticising 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, noting that owning 100 per cent 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, the Director-General of the Securities and Exchange Commission (SEC), Mr Emomotimi Agama, 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, Mr 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 SEC 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 agency regards academics as strategic partners whose ideas can shape policies that strengthen investor confidence and support market development, adding 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,” Mr Agama said.
He reaffirmed the organisation’s commitment to working closely with the academic community to advance knowledge, strengthen regulation and support the sustainable development of Nigeria’s capital market.
On his part, the president of the Capital Market Academics of Nigeria (CMAN), Prof. Uche Uwaleke, has 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.
Mr 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, Mr 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.
Mr 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.
Mr Uwaleke commended SEC, 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.
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
