Section 255 Investments and Securities Act

Section 255 of the Investments and Securities Act 2025 is about Cancellation of warehouse receipt after the delivery of commodities. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

(1) Except as otherwise provided in this Act or rules and regulations made under it, where a warehouse operator delivers commodities for which a warehouse receipt had been issued, the issuer shall cancel the receipt.

(2) Where an issuer of a warehouse receipt, fails to cancel the receipt as provided for under subsection (1), and a third party purchaser without notice acquires title to the receipt, the issuer of the warehouse receipt shall remain liable for the market value of the commodities.

(3) Where an issuer of a warehouse receipt, fraudulently fails to cancel a receipt upon which delivery has been made, the issuer commits an offence and is liable on conviction to a fine of not less than N20,000,000, and in addition pay the prevailing market value of the commodities.