Section 120 Investments and Securities Act

Section 120 of the Investments and Securities Act 2025 is about Return of surplus money to subscribers. It is under Part IX (Regulation of Securities) of the Act. It provides as follows:

(1) The Commission shall have the power to prescribe the maximum period within which surplus money due to subscribers shall be returned.

(2) The Commission may, subject to subsection (3), prescribe the rate of interest payable to subscribers whose surplus money are held beyond the period prescribed under subsection (1).

(3) The interest due and payable under subsection (2) shall not be less than the Central Bank of Nigeria Monetary Policy Rate plus 5% and the Commission may, in addition, require a company which fails to honour its obligation under this subsection to pay a higher rate of interest on the surplus money.

(4) A person who fails to comply with the provisions of this section is liable to a penalty of not less than N5,000,000 and a further sum of not less than N50,000 for every day the violation continues.