Babatunde Ajibade and Debo Ogunmuyiwa of SPA Ajibade & Co consider the complex legal framework of capital market disputes in Nigeria, which continues to encourage forum shopping by litigants.
Prior to 1999, capital market disputes in Nigeria were resolved by the Securities and Exchange Commission or before the Federal High Court (FHC), depending on their nature.
However, with the enactment of the Investments and Securities Act 1999 (ISA 1999) an attempt was made to transfer the responsibility for the resolution of capital market disputes to the Investments and Securities Tribunal (IST, or the Tribunal), which was set up pursuant to Section 225 of the ISA 1999.
While the rationale for setting up the IST was laudable, and was welcomed at the time by market operators and legal practitioners engaged in capital markets law and practice, the manner of its implementation has created uncertainty as to the appropriate forum for the resolution of capital market disputes.
This lack of certainty requires that parties involved in capital market disputes in Nigeria navigate their way carefully through the maze, so as to ensure that their disputes are submitted to the proper forum for resolution.
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