Section 196 Investments and Securities Act

Section 196 of the Investments and Securities Act 2025 is about Prohibited schemes. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) The Commission shall have the power to enter and seal up all prohibited schemes and shall obtain an order of the Tribunal or a court to freeze and forfeit all assets of such schemes to the Federal Government of Nigeria.

(2) The cost and expenses incurred under subsection (1) shall be a first charge from the funds and properties of the illegal scheme including assets of its owners, promoters or managers, whether acquired legitimately or otherwise.

(3) The promoter and operator of any entity engaged in a prohibited scheme commits an offence and are liable on conviction to a fine of not less than N20,000,000 or imprisonment to a term of 10 years or both.

(4) Notwithstanding the provisions of subsection (3), the Commission shall be entitled to recover expenses incurred in the course of investigating such prohibited schemes through the office of the Attorney-General of the Federation.