Enifome EKWA

Law is not confined to the regulation of criminal conduct or the enforcement of contractual obligations. Rather, it plays a broader role in regulating various aspects of society, including economic and financial activities. One such area is the capital market, which operates within the wider field of investment banking and has historically been subject to legal control. The regulation of investment banking has evolved through legislative measures aimed at ensuring market stability and protecting investors. Examples include the Glass–Steagall Act of 1933, enacted following the 1929 stock market crash, the Gramm–Leach–Bliley Act of 1999, and Nigeria’s Investment and Securities Decree of 1979, now replaced by the Investment and Securities Act, 2007. These laws demonstrate the importance of legal frameworks in governing capital market operations. In Nigeria, investment banking and capital market activities are regulated by statutory bodies established to ensure compliance with industry standards and to safeguard investors’ interests. Key regulatory institutions include the Corporate Affairs Commission (CAC), responsible for company registration and legal personality; the Securities and Exchange Commission (SEC), which regulates securities transactions and public offers; and the Central Bank of Nigeria (CBN), which promotes financial system stability. This study examines the legal framework regulating investment banking in Nigeria, with particular focus on investor protection, the prevention of practices such as insider trading, the enforcement of regulatory sanctions, and the use of dispute resolution mechanisms, including court proceedings and alternative dispute resolution (ADR). The study highlights the role of law in promoting transparency, accountability, and confidence in Nigeria’s capital market.