Achieving Effective Capital Market Regulation in Nigeria - A Holistic Approach

Abstract

This study looks at capital market regulation in Nigeria in the light of the challenges facing the market as a result of current atmosphere of loss of investor confidence. The study takes a conceptual posture and relies on extensive review of secondary data. The finding is that aside global financial meltdown, regulatory failure largely affected the adverse performance of the market. Our recommendations to achieve effective regulation in the market include proactive approach to regulation, introduction of more regulatory measures to reign in erring company directors and their auditors. Other recommendations are effective screening of market participants before being allowed to play in the market, encouragement of, shareholder activisim, whistle blowing culture and sufficient funding for the apex regulatory body in the market (the Nigerian SEC). On the whole, the call is for a holistic approach to capital market regulation in Nigeria to ensure effectiveness.