Securities regulation and capital market development in Nigeria: recurring challenges and prospect for solution

Purpose - The purpose of this paper, therefore, is to amplify the imperativeness for a re-oriented regulatory approach that prioritizes constructive engagement with the regulated communities, harnessing the existing pool of savings and retention of market participation. Design/methodology/approach - The paper adopts a doctrinal legal research design with data drawn from primary and secondary sources of law. The primary sources include case laws and statutes, and the secondary sources include book chapters, journal articles and other internet-sourced materials. Findings - The paper finds that the status quo in Nigeria if left to continue would spell severe economic disaster for Nigeria’s securities administration, but a well-structured realignment of the regulations would boost the country’s securities market effectiveness. Research limitations/implications - The research’s conclusions and suggestions might only be applicable to Nigeria’s particular situation with regard to capital market development and securities regulation. Other nations or locations with distinct regulatory systems, market structures and economic situations may not be able to immediately adapt it. When extending the research results outside of the Nigerian environment, caution should be exercised. For regulatory agencies and policymakers, the research offers insightful suggestions. The analysis may pinpoint certain areas where policy changes are required to address reoccurring problems and improve the chances for a healthy capital market. Practical implications - For Nigeria’s regulatory frameworks controlling securities to be strengthened, this paper would be crucial. To make sure they are in line with global best practices, this entails examining and revising current laws, rules and standards. A stronger regulatory environment may also result from the implementation of harsher enforcement procedures and consequences for noncompliance. It is also required for creating market infrastructure, fostering market integration and cooperation, facilitating access to capital, monitoring and evaluation. It would also benefit investor education and protection. Social implications - Addressing these persistent issues and potential remedies in Nigeria’s capital market development and securities regulation would have various advantageous social effects. These include improved market infrastructure, more financial inclusion, improved investment protection for investors and improved market openness and integrity. Such results will help Nigerian society as a whole by fostering economic expansion, job creation, wealth distribution and general social progress. Originality/value - This paper is the original work of the authors and has not been published anywhere nor submitted to another journal for publication.