Dispute Resolution in the Nigerian Capital Market: An Examination of the Role of the Administration Proceedings Committee

Description

ABSTRACT

Dispute Resolution in the Nigerian Capital Market: An Examination of the Role of the Administration Proceedings Committee

Professor Augustine Agom*

The need for an effective dispute resolution mechanism that is investor friendly in the Nigerian capital market can never be overemphasised. The Administrative Proceedings Committee (APC) was established by the Securities and Exchange Commission and imbued with quasi-judicial powers to inquire into the substance of alleged violations of securities law. The establishment of the APC has added immense value to the operations and jurisprudence of the Nigerian capital market. It has however come under severe judicial criticisms of late ranging from allegations of violation of the rules of natural justice, lack of jurisdiction and independence. The impact of these on investors’ confidence is dire. From the analysis of decided cases, it was found that dispute resolution at the APC accords with the fundamental objectives of the Investments and Securities Act, 2007, which is, the protection of investors, maintenance of fair and orderly market and the reduction of systemic risks. The APC has helped in filtering disputes in the market such that only in very few instances do some of the disputes proceed to the regular courts and reported in Nigerian law reports.

Keywords: Dispute Resolution, Nigerian Capital Market, Administrative Proceedings Committee.

INTRODUCTION
The Nigerian capital market is the upper end of the Nigerian financial system. It provides the intermediating facilities for mobilisation of resources on a vast scale and ensuring optimum allocation in critical areas of need. In the course of interaction in the financial intermediation process, relationships are often bruised giving rise to disputation, claim of right and apportionment of liability. The need for an effective dispute resolution mechanism that is investor friendly can, therefore, never be overemphasised. The guarantee of fair determination of grievances inspires confidence in a financial system. This is imperative if investors, domestic and foreign, are to vote their fortunes into the economy. There is a direct correlation between an efficient justice system and investors’ confidence. There is no gainsaying the fact that assurance of a dispute settlement system that is fair, efficient and firm will buoy investor’s confidence to plough their fortunes into a particular economy. This informs the recommendation of the International Organisation of Securities Commission (IOSCO) that national capital market must entrench a grievance handling mechanism that is investor friendly.₁ The Nigerian Administrative Proceedings Committee (APC) was established in fulfillment of this recommendation.

The Securities and Exchange Commission (SEC) deploys several dispute resolution strategies in the supervision of the Nigerian capital market.

* Ph.D., BL. Professor of Law, Head of Department, Commercial Law, Faculty of Law, Ahmadu Bello University, Zaria.

1. Objectives and principles of Securities Regulation (May 2003)  accessed 9 August 2017.

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW VOL.8 NO.4