COMPARATIVE ANALYSIS OF THE REMEDIES FOR VICTIMS OF INVESTMENT FRAUD IN NIGERIA

Abstract

Investment fraud has emerged as one of the most pervasive financial crimes in Nigeria, particularly with the proliferation of Ponzi schemes, fraudulent investment platforms, and unregulated capital market operations. Victims of these schemes frequently suffer substantial financial losses and often encounter significant challenges in recovering their investments due to the insolvency of scheme operators among others. This article examines the legal remedies available to victims of investment fraud in Nigeria through a comparative analysis of common law and statutory frameworks. It explores remedies such as negligence, negligent misrepresentation, breach of fiduciary duty, among others. The article also analyses the role of regulatory agencies such as the Securities and Exchange Commission (SEC), the Economic and Financial Crimes Commission (EFCC), and other law enforcement agencies in addressing investment fraud. Using a doctrinal research methodology, the study evaluates relevant statutes, case law, and academic literature. The findings reveal that although Nigeria possesses an extensive legal framework for addressing investment fraud, enforcement challenges, weak regulatory coordination, and other factors undermine the effectiveness of these remedies. The article concludes by recommending stronger regulatory enforcement, legislative reforms targeting Ponzi schemes, and enhanced investor education to protect investors and strengthen Nigeria’s financial system.