The Chairman of the Investments and Securities Tribunal (IST), Amos Azi, has disclosed that the newly enacted Investments and Securities Act now prescribes punitive measures of no less than ten million naira against operators of Ponzi schemes.
Azi made this known during a stakeholders’ engagement meeting towards unveiling the Tribunal’s new e-filing platform.
He noted that the repealed 2007 Act did not provide for such sanctions against Ponzi scheme operators.
He emphasized that the new provisions in the Act are expected to serve as a deterrent and help tackle the menace of illegal investment operators within the capital market.
“the formal act did not make specific provision as to the measures to be taken against Ponzi scheme operators which this new act has not recognised with a punitive punishment of not penalty of not less than 10 million naira and also the act has also provided that if the accounts of the operator is frozen all expenses incurred in the course of investigating or freezing the account will also be deducted from that account and the amount seized from the operator will be transmitted into the federation account.”
In addition to the sanctions, Azi highlighted other significant innovations introduced by the Act that include the recognition of digital assets as securities, legal acknowledgment of cryptocurrency, and provisions for virtual service providers.
He explained that the additions allow for the establishment of virtual exchanges and broaden the Tribunal’s jurisdiction to adjudicate disputes arising in these areas—after passing through the complaint management framework.
Speaking on the on boarding of the IST to the e-filing platform, Azi described it as a positive development that would enhance the investment climate in Nigeria.
He stated that the initiative is poised to boost investor confidence and stimulate intentional capital investment in the country.
He howe issued a note of caution, stating that once the e-filing system becomes fully operational, the physical filing of cases will no longer be allowed, stating the stakeholders’ meeting was convened to ensure that legal practitioners are adequately trained on the new system.
Speaking on the development, Chairman of the Nigerian Bar Association (NBA), Gwagwalada Branch, Owhor Clever, appealed to the Tribunal to extend training opportunities to NBA members to ensure seamless court proceedings under the new system.
The stakeholders’ engagement on e-filing and case management also featured online participation from Abuja, Port Harcourt, and Enugu State.
The Investments and Securities Tribunal is expected to go live with the e-filing platform, barring any changes, in July 2025