By Ehichioya Steve Odion
Hon. Nosa Osemwengie, a member judge of the Investments & Securities Tribunal (IST), Abuja, has asserted that the Nigeria capital market has a resolution mechanism that makes it a fertile ground for investors to source for funds.
Hon. Osemwengie, who is also a qualified stockbroker, said the nation’s capital market was robust and well regulated because of the settlement mechanism through the tribunal -IST. He noted that the tribunal has created confidence in the market, in the sense that investors know if they are wronged they can get quick justice at the end of the day.
He opined that the speedy trial of cases brought before it, makes resolution faster than the regular courts, and this in turn boasts the confidence of operators and investors.
‘’The capital market is okay because of the settlement mechanism through the tribunal. This has created confidence in the market, so that you know you will have justice if you have a problem with Security and Exchange Commission (SEC) or capital market operators, and by the mandate we have, matters do not last more than three months once they are brought to us unlike the regular courts. That is what sets the tribunal apart from the regular courts,” he said.
The role of the capital market in the nation’s economy cannot be overemphasized, he enthused. Emphasizing on the relevance of capital in bridging the financial needs of industries, he said: “The money market is where you can source for the short term fund. You can use commercial paper for a short term, say three months maximum of one year. But in the capital market you can source long term loans for ten, twenty years. You will be able to use the money sourced for a long time without anybody bordering you to pay immediately. The capital market is a place for long term sources of funds for companies and governments. Without a capital market, big companies will go without funds to execute projects. Like Dangote, he cannot do without borrowing money from the capital market. So the capital market is very important to the economy because it provides a platform for companies to source funds.”
Osemwengie, who is retiring at the end of this legal year after serving two terms of four years each as a member judge of the tribunal, noted that though the nation’s capital market is thriving and alert to curbing corruption in the system, it’s not full-proof because “people still take advantage and circumvent the system. In the capital market we have regulators, Securities and exchange commission(SEC), Nigeria Exchange Group, and others. In a way these self-regulatory bodies control their members. You would expect with these control mechanisms there would be no problem. With this kind of neatly tight system, you would think the tribunal will not have much to do but this not so, being human some still cut corners.”
However, he noted that there were so many mechanisms for controlling stock brokers, with the existence of a body like Chartered Institute of Stock brokers(CIS) that sanctions erring members who contravene the rules. Apart from this, there are Codes and Rules made for capital market operators, employees and staff. These are in an attempt to make sure that the system works well.
Explaining how the tribunal works, he said the tribunal has appellate and original jurisdiction over matters. “The tribunal also has original jurisdiction over certain matters. Most cases the tribunal has original jurisdiction involve SEC, that if somebody has a matter against SEC, you can go to the tribunal directly because SEC is not expected to be a judge in its own cause. On the other hand, in its appellate jurisdiction, somebody who is not satisfied with the decision of SEC can appeal to the tribunal. All the same, he said the tribunal is alive to its responsibility.
Hon. Osemwengie, who was once a banker, praised members of the tribunal for their ability to make it corruption free as there has not been any reported case of corruption involving members of the tribunal of any kind so far. There is also almost 80 percent compliance with the decisions of the Tribunal. The few cases that went on appeal have been affirmed by the Appellant Courts.
Osemwengie hinted that he would be going into private practice, focusing on financial market, after winding up at the tribunal, noting that his first son, living in the Uk, with PhD in law, has held forte for him at his law offices in the UK, Lagos, Benin and Abuja while he has been at the bench. I can go back to practice because the Tribunal, even though of equivalent status as Federal High Court, is a tenured appointment. Appeals from the Tribunal go to the Court of Appeal.
Hon. Osemwengie said he putting together a book which chronicles his experience in the capital market sector.
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