Last week, the media was awash with reactions to a petition from a prominent advocacy group, Make A Difference Initiative (MADI), which had petitioned the Senate over what it described as “a breach of the Investment and Securities Act 2025” in the purported appointment of the chairman of the Investment and Securities Tribunal (IST) by the Secretary to the Government of the Federation (SGF), Senator George Akume.
MADI’s petition, addressed to Senate President Godswill Akpabio, highlighted concerns from what it described as the illegal appointment of Mr Aminu Junaidu, a lawyer, by the SGF weeks after President Bola Tinubu had approved the re-appointment of Barrister Amos Isaac Azi as the tribunal’s chairman and CEO.
According to the group, Barrister Azi was duly reappointed by the president on August 13, 2025, and handed a letter to that effect, with all administrative procedures concluded.
Sometimes last year, the Chartered Institute of stockbrokers (CIS), and the Association of dealing House of Nigeria (ASHON), expressed similar concerns to the then Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, via separate statements.
They duo pointed out that the confusion within the IST poses a significant concern as it may undermine the confidence of the international community and investors, ultimately affecting the credibility and integrity of the Nigerian capital market.
The CIS and ASHON strongly complained about the violation of section 315 (a) of the Investment and Securities Act 2025 by Jinadu’s said appointment as chairman of the tribunal.
Their concern stems from the impact such an appointment would have on the Nigerian capital market, especially in the wake of the struggle to address the CGT levy imposed on market transaction.
They observed that the situation could hurt the Investment and Securities Act 2025 which was recently signed into law by President Tinubu
The sum of their concerns pointed to one fact – that the IST should never be used for political patronage.
The IST was established under the Investments and Securities Act (ISA), 1999, to expeditiously hear and determine all disputes arising from the capital market, to the exclusion of any other court.
Due to its importance to the growth of Nigeria’s economy and financial stability, the recently enacted ISA 2025 significantly strengthens the IST by insisting that the appointment of its chairman and members must be approved ONLY by the president.
The Act also unambiguously puts clarity on the qualification and experience of the chairman and members (S. 315).
With the IST is considered as a fiduciary institution, its leadership and governance structure are expected to reflect competence, independence and integrity. Appointments into such institution should be guided strictly by merit, relevant expertise and strict adherence to statutory provisions, not by political considerations or rewards for loyalty.
When political patronage becomes a factor, it undermines the purpose of the statutory framework which is designed to ensure the tribunal has a qualified and experienced legal expert in capital market matters at its helm, in compliance with International Organization of Securities Commissions (IOSCO) principles.
Nigeria’s capital market has gained global attention as a high growth investment destination due to the modernisation of the regulatory framework and its alignment with global standards.
The creation of IST is among the factors that enabled Nigeria to become a signatory to IOSCO MMOU. The critical role of IST in the stability of the capital market makes it a non-political agency that anybody can be appointed either as chairman or member, in disregard of statutory provisions.
A cornerstone of IOSCO standards is the independence and transparency of the regulator and the judicial arm (IST).
Where the appointment process is seen as political or procedurally defective, it destroys market predictability. And when that happens, investors may lose confidence in the impartiality of the tribunal and the regulatory framework of the capital market may be jettisoned.
With SEC aspiring to be an EMMOU signatory, observers fear that a breach of the ISA by the government in appointing an unqualified person to head its dispute resolution institution could clog its aspiration.
Specifically, observers have pointed out that the recent appointment of the chairman of IST from the office of the SGF other than the president on recommendation of the Minister of Finance (S, 315(a)) is unlawful and a usurpation of powers.
Also, they stressed that failure to meet the minimum 15 years capital market experience requirement as a basic qualification for a candidate to be appointed the chairman of IST stands to render the proceedings and judgments under the leadership of such chairman null, void and of no effect, because judicial and quasi-judicial bodies must be properly constituted before exercising authority (S315(a)).
To strengthen the tribunal’s position in the regulatory framework and the global recognition of Nigeria’s capital market and the role of SEC, there is, thus, need for strict adherence to the rule of law without any form of perceived political undertone.
The appointment of the chairman of IST needs urgent review as it is an economically sacred institution that should not be politicised.
President Tinubu should please listen to the fears and suggestions from the stakeholders in the capital market and do the right thing so as to consolidate on the gains already made by his administration in this very important sector of the economy.