The Chairman of the Investments and Securities Tribunal (IST), Amos Azi, has announced that the newly enacted Investments and Securities Act now prescribes stringent punitive measures no less than ten million naira for operators of Ponzi schemes in Nigeria.
Azi disclosed this on Friday during a stakeholders’ engagement in Abuja, organized to unveil the Tribunal’s forthcoming e-filing platform.
He noted that the repealed 2007 Act lacked specific provisions to penalize Ponzi scheme promoters, allowing them to operate with impunity.
“The new provisions are expected to serve as a strong deterrent,” Azi emphasized, “and will help combat the growing menace of illegal investment schemes that threaten the integrity of the capital market.”
Beyond sanctions, the Chairman highlighted key innovations introduced by the new Act, including the recognition of digital assets as securities, the legal acknowledgment of cryptocurrencies, and the regulation of virtual service providers.
He explained that these developments pave the way for establishing virtual exchanges and expand the Tribunal’s jurisdiction to adjudicate disputes in the digital investment space—provided such cases have passed through the complaint management framework.
Azi also described the Tribunal’s onboarding to the new e-filing system as a landmark move set to enhance Nigeria’s investment climate.
“This digital transition will boost investor confidence and attract more deliberate capital investment into the economy,” he said.
“Once the e-filing system becomes fully operational, physical filing of cases will no longer be permitted,” he cautioned, urging legal practitioners to embrace the new platform.
He noted that the stakeholders’ forum was convened to ensure that practitioners are properly trained and prepared for the transition.
In a related development, the Chairman of the Nigerian Bar Association (NBA), Gwagwalada Branch, Owhor Clever, appealed to the Tribunal to extend training opportunities to NBA members to facilitate smooth adaptation to the system.
The stakeholder engagement witnessed hybrid participation from Abuja, Port Harcourt, and Enugu.
The Investments and Securities Tribunal is expected to officially go live with the e-filing platform in July 2025, barring any last-minute changes.
Rel: Khadija Kubau
