The Nigerian Securities and Exchange Commission revealed readiness to collaborate with relevant Alternative Dispute Resolution (ADR) professionals to ensuring effective dispute resolution in the capital market.
Director-General of the SEC, Mr. Lamido Yuguda affirmed this and explained that this new development will create avenues to maintain disputes and sustain investment in the capital market.
This was expressed by the DG in Abuja on Wednesday at the Abuja Chapter of the Chartered Institute of Arbitrators (CIArb) meeting led by its chairman, Mr. Sola Ephraim-Oluwanuga.
Mr. Yuguda said that the need for a veritable dispute resolution mechanism has long been recognised in the capital market, that traditional litigious and adversarial dispute resolution mechanism has fallen short of achieving its purpose, adding that investment in the sector would suffer if disputes among investors are not well resolved.
He said, “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.”
He also 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.
Mr. Ephraim-Oluwanuga, the CIArb Chairman 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.