The Chairman of the Investments and Securities Tribunal (IST), Amos Azi, has disclosed that the newly enacted Investments and Securities Act prescribes a minimum fine of N10million against individuals or entities found guilty of operating Ponzi schemes.
This he said is to strengthen investor protection and boost confidence in the Nigerian capital market.
Azi made the disclosure during a stakeholders’ engagement meeting held in Abuja. The event was convened to introduce the Tribunal’s soon-to-be-launched electronic filing (e-filing) platform and to sensitize legal practitioners on its operational framework.
According to him, this new punitive provision is a major departure from the repealed 2007 Act, which lacked specific sanctions for Ponzi scheme activities.
He described the inclusion of monetary penalties in the current Act as a crucial step in deterring illegal investment operations that have undermined trust in the financial system.
As part of efforts to modernize the Tribunal’s operations, Azi also revealed that once the e-filing platform becomes fully operational, physical filing of cases will be discontinued. He added that the transition to digital case management was not just a technological upgrade, but a strategic initiative designed to streamline case processing and foster transparency in judicial proceedings.
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“The purpose of this stakeholders’ engagement is to ensure that members of the legal community are fully equipped with the knowledge required to navigate the new e-filing system. It is imperative that we all adapt quickly to these changes,” Azi said.
Beyond addressing ponzi schemes, the new Act introduces several forward-looking provisions to align Nigeria’s financial regulatory framework with global trends. Among the key innovations are the formal recognition of digital assets as securities, the legal acknowledgment of cryptocurrencies, and provisions for regulating virtual service providers.
“These developments make room for the establishment of virtual exchanges, and they also expand the Tribunal’s mandate to adjudicate disputes that may arise in the virtual asset ecosystem—subject to passage through the existing complaint management structure,” he explained.
He expressed optimism that the reforms, especially the move to e-filing, would improve the efficiency of the Tribunal’s processes, making Nigeria a more attractive destination for domestic and foreign capital. “A modern, accessible and efficient dispute resolution mechanism is critical to the functioning of any capital market. This initiative will not only improve our service delivery but also encourage more intentional investments in the economy,” he added.
During the meeting, the Chairman of the Nigerian Bar Association (NBA), Gwagwalada Branch, Owhor Clever, called on the Tribunal to broaden its training outreach to include all interested NBA members. He noted that such efforts would ensure smoother court proceedings under the new system and allow legal practitioners to offer better support to their clients.
The engagement featured both in-person and online participation, with stakeholders joining from Abuja, Port Harcourt, and Enugu. The e-filing system is scheduled to go live in July 2025, subject to final adjustments.