Professor Godwin Oyedokun, a professor of accounting and financial management at Lead City University, Ibadan, has called for Nigeria's capital market to be transformed into a digitally driven investment ecosystem. This transformation is necessary to mobilize long-term domestic and international capital. Oyedokun made this statement while delivering the 19th Fellowship Inaugural Lecture of the Capital Market Academics of Nigeria (CMAN). The lecture was titled "Growing Opportunities through Digital Wealth, Innovation and Nigeria's Capital Market Transformation."
Oyedokun identified several constraints limiting the market's capacity to create and distribute wealth. These constraints include limited retail participation, infrastructure deficits, financial exclusion, governance weaknesses, and technology risks. To address these challenges, Oyedokun unveiled the Godwin Capital Market Framework. This framework is a six-pillar model that focuses on governance and good regulation, innovation, digital wealth creation, wealth inclusion and market deepening, intelligent infrastructure and investment ecosystem, and national economic transformation.
The framework identifies opportunities in various areas, including fintech, artificial intelligence, blockchain, digital securities, tokenization, crowdfunding, venture capital, private equity, green finance, and Islamic finance. Oyedokun believes that advances in technology and financial innovation can lower transaction costs, improve market efficiency, widen financial inclusion, and create new channels for wealth creation. He also advocates for the greater deployment of Regulatory Technology (RegTech) and Supervisory Technology (SupTech) to strengthen compliance, regulatory oversight, and market surveillance.
Oyedokun emphasized that increased digital participation must be matched by stronger transparency, disclosure requirements, investor protection, and market discipline. He also called for greater participation by households, entrepreneurs, and smaller businesses. According to Oyedokun, technology can lower barriers to capital-market participation. Software, data, intellectual property, artificial intelligence, digital platforms, and technology-enabled enterprises are increasingly becoming sources of economic value and potential areas for capital-market financing.
The implementation of the framework will require credible regulation, reliable digital infrastructure, investor protection, and collaboration among regulators, financial institutions, universities, technology companies, and start-ups. Oyedokun's proposal aims to create a more inclusive and efficient capital market. This can be achieved by leveraging technology and innovation to drive growth and development.
The lecture was part of the Capital Market Academics of Nigeria (CMAN) fellowship program. CMAN is an organization that brings together academics and professionals in the capital market to promote research, innovation, and best practices. Oyedokun's lecture provided valuable insights into the opportunities and challenges facing Nigeria's capital market.
The transformation of Nigeria's capital market into a digitally driven ecosystem has the potential to unlock long-term wealth and drive economic growth. Oyedokun's proposal provides a framework for achieving this transformation. The implementation of the framework will require collaboration and coordination among various stakeholders.
Key points
- A digitally driven capital market can mobilize long-term domestic and international capital.
- The Godwin Capital Market Framework identifies opportunities in fintech, artificial intelligence, blockchain, and other areas.
- Implementation will require credible regulation, reliable digital infrastructure, and collaboration among stakeholders.
