Aduragbemi Omiyale
By Aduragbemi Omiyale
The need for a robust and credible dispute resolution mechanism for the Nigerian capital market has been emphasised by the Securities and Exchange Commission (SEC).
According to the apex regulatory agency for the market, if this is put in place, investors will have confidence in the ecosystem, which will be beneficial to all the stakeholders.
Speaking at a meeting with the Abuja Chapter of the Chartered Institute of Arbitrators (CIArb), the Director-General of SEC, Mr Lamido Yuguda, said issues were bound to happen when two or persons come together for the purpose of investment.
He said the establishment of a veritable dispute resolution mechanism for the capital market delivers justice faster than traditional litigious and adversarial dispute resolution mechanisms, noting that investment in the sector would suffer if disputes among investors are not well resolved.
Mr Yuguda said the agency was ready to collaborate with relevant alternative dispute resolution professionals like the CIArb as a means to ensuring effective dispute resolution in the capital market.
“The whole nature of the market is that people come together to make investments. But along the line, something happens and the same people actually fall out.
“And the problem with investment is that if the true parties to investment fall out, investment falls. We understand that both parties usually cling to their positions but there is a superior situation that could benefit both parties.
“This is where an arbitrator is needed to actually bring them to that position. And that arbitrator, who is seen as independent, performs his professional duty by talking to the parties,” Mr Yuguda stated.
He said the visit by the members of the institute could not have come at a better time, assuring that the commission partnering with an institute whose members are specialised in the area of dispute resolution is actually highly beneficial to both the SEC and practitioners in the capital market.
The chairman of CIArb Abuja chapter, Mr Sola Ephraim-Oluwanuga, who led his team to the meeting, said the institute was desirous of partnering with SEC to deepen the access to justice in the securities industry.
He said CIArb has trained competent international arbitrators with demonstrable experience in capital market issues, adding that the institute can also assist the SEC in training and capacity building of its personnel.
“CIArb can train subject matter experts on securities dispute resolution. Also, the industry may also put CIArb in its agreement as an appointing authority to any dispute involving arbitration, whilst preferring its members to serve as party nominated arbitrators in the sector,” he added.
