Minister Oyedele suggests special commercial court to boost investment in Nigeria

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has suggested setting up a special Commercial Dispute Resolution Tribunal. This tribunal would help speed up the resolution of business disputes. He believes that long court cases scare away investors and hurt Nigeria’s economy.

Mr Oyedele made this suggestion on Tuesday. He spoke during his first lecture as a Fellow of the Capital Market Academics of Nigeria (CMAN) at their second biennial conference in Abuja.

The conference was titled “The Nigerian Capital Market as a Catalyst for Equitable and Inclusive Growth.” It brought together policymakers, regulators, academics, and market operators to talk about changes needed to make Nigeria’s capital market stronger.

Mr Oyedele pointed out that commercial disputes can take an average of 15 years to go through the High Court, Court of Appeal, and Supreme Court. This creates uncertainty for businesses and raises the cost of investing in Nigeria.

He explained that the proposed tribunal would have judges and arbitrators who understand commercial, financial, and capital market issues. It would also use digital systems to manage cases and have strict timelines to ensure faster resolutions.

He believes this special tribunal would support existing investment protection systems by offering businesses a quicker way to solve disputes. “Virtually every financial instrument, whether bonds, syndicated loans, private placements or structured notes, is built on enforceable contracts,” he stated. He added that effective contract enforcement is key for the growth of the capital market.

Mr Oyedele also asked Nigerians to change how they see public borrowing. He said we should look at how borrowed money is used instead of just the total amount borrowed. “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 explained.

He criticized the habit of condemning all government borrowing without checking if the funds are used for projects that can give long-term economic returns. He said governments and businesses that borrow to invest in productive assets that yield returns above the cost of capital are making smart financial choices.

Mr Oyedele shared what he called the “seven laws of capital attraction.” He said investors care more about consistent policies, strong institutions, and the rule of law than about attractive tax incentives. “Capital hates uncertainty more than taxation,” he said.

He said investor doubts arise from policy changes, regulatory inconsistencies, foreign exchange issues, and weak contract enforcement. The minister added that long-term investment is more likely to come to countries that have trustworthy institutions, including an independent judiciary, a reliable central bank, and an efficient public service.

He also encouraged government officials, professionals, and the media to enhance communication about economic reforms. He noted that Nigeria often pays a “perception premium” because policy improvements are not well communicated to investors.