CASE DIGEST: CAPITAL MARKET; SECURITIES AND EXCHANGE COMMISSION; INVESTMENT AND SECURITIES TRIBUNAL: CAN CAPITAL MARKETS DISPUTES BE SUBJECT TO THE EXCLUSIVE JURISDICTION OF THE INVESTMENT AND SECURITIES TRIBUNAL?

(MUFUTAU AJAYI v. SECURITIES AND EXCHANGE COMMISSION)

SUPREME COURT OF NIGERIA

(John Okoro, Chima Nweze, Uwani Musa, Mohammed Garba, Helen Ogunwumiju)

Background

Mufutau Ajayi (Appellant) is a Chartered Accountant, a member of the Institute of Chartered Accountants of Nigeria (ICAN) and was a former employee of African Petroleum Plc (the company) till he retired from service in April 2000, wherein he served as the company’s Finance and Accounts Manager. Sometime in the year 2000, the National Council on Privatization offered for sale on behalf of the Federal Government of Nigeria 86,400,000 ordinary shares of African Petroleum Plc while the Appellant was still in active service of the said Company. A year later, a core investor of the company alleged in a press conference that the past management of the company had failed to disclose debts of N22.5 billion owed by the company to various creditors.