The Chairman of Nigeria’s Investments and Securities Tribunal (IST), Amos Azi, has disclosed that the newly enacted Investments and Securities Act (ISA) 2025 now prescribes punitive measures of a minimum of N10 million on any operator of Ponzi scheme in the country.
Azi, who made this disclosure at the weekend during a stakeholders’ engagement meeting to ensure that legal practitioners are adequately trained on the new system preparatory to the unveiling the Tribunal’s new e-filing platform.
According to him, the repealed 2007 Act did not provide for such sanctions against Ponzi scheme operators.
He maintained that the new provisions in the new Act were expected to serve as a deterrent to fraud and help tackle the menace of illegal investment operators within the capital market.
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In addition to the sanctions, Azi highlighted other major provisions in the new legislation, including the recognition of digital assets as securities, legal acknowledgment of cryptocurrency, and provisions for virtual service providers.
The IST Chairman explained that these new provisions allowed 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.
On the tribunal’s electronic filing innovation, Azi described it as a positive development that would enhance the investment space in the country and boost investor confidence and stimulate intentional capital investment in the country.
The legal expert, however, cautioned that once the e-filing system becomes fully operational, the physical filing of cases would no longer be allowed.
In an interview with journalists, the 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 IST’s e-filing platform is expected to be activated in July 2025
