Have you been a victim of securities fraud, market manipulation, or other investment violations in Nigeria? If so, you might be considering joining a class action lawsuit before the Investments and Securities Tribunal (IST).
Costs of Joining a Class Action Before Nigeria's Investments and Securities Tribunal
Published: July 31, 2025
Written by Abdulateef Muhammed
Author of Nigerian Lawyer's Playbook
INTRODUCTION
While class actions can be powerful tools for seeking justice and recovering losses, understanding the financial commitment involved is crucial before making your decision.
As the lead lawyer at Abdul Muhammed Law Practice, I want to provide you with a transparent breakdown of the expenses you can expect when participating in a class action before the IST.
WHY CLASS ACTIONS MATTER FOR NIGERIAN INVESTORS
Class actions represent a game-changing opportunity for individual investors who have suffered losses due to corporate misconduct. Rather than facing powerful financial institutions alone, class actions allow you to pool resources with other affected investors, making it financially viable to pursue claims that would otherwise be too expensive to litigate individually.
The IST, established to handle securities-related disputes, provides a specialized forum where investors can seek redress for violations such as:
✅ Securities fraud and misrepresentation
✅ Market manipulation schemes
✅ Breach of fiduciary duty by fund managers
✅ Unauthorized trading activities
✅ Failure to disclose material information
BREAKING DOWN THE FINANCIAL INVESTMENT
For Regular Class Members: The ₦200,000 Investment
If you're joining an existing class action as a regular member, you'll need to make a one-time payment of ₦200,000.
This might seem substantial, but it's important to understand what this investment covers:
Comprehensive Legal Representation
Your payment secures professional legal services from experienced securities lawyers who understand the complexities of IST proceedings.
Expert Witness Fees
Securities cases often require specialized testimony from financial experts, forensic accountants, and industry professionals. These expert witnesses are crucial for establishing the technical aspects of your case.
Administrative and Operational Costs
This includes document production, case research, communication expenses, court filing fees, and other essential administrative functions that keep your case moving forward.
Contingency Fee Arrangement
Beyond the initial payment, our firm operates on a results-based model. We only collect additional fees if we successfully recover money for the class. This alignment of interests ensures we're fully committed to achieving the best possible outcome for you.
FOR NAMED CLAIMANTS: LEADING THE CHARGE
If you're considering becoming the named claimant who initiates the class action, the initial investment is **₦1,000,000. However, this comes with a built-in incentive structure:
-Initial Payment: ₦1,000,000 to commence proceedings
- Refund Provision: Once the class reaches 10 members, you receive ₦800,000 back
- Net Investment: Your final contribution becomes ₦200,000, the same as other class members
This structure encourages early action while ensuring that named claimants aren't permanently disadvantaged for taking the initiative to start the case.
THE VALUE PROPOSITION: WHY THESE COSTS MAKE SENSE
Shared Financial Burden
By spreading costs across multiple class members, individual investors can access high-quality legal representation at a fraction of what it would cost to pursue similar claims individually.
A complex securities case might cost hundreds of thousands or even millions of naira to litigate alone.
Access to Specialized Expertise
Securities law is highly technical and specialized. The costs you contribute ensure access to lawyers who understand the intricacies of Nigerian securities regulations, IST procedures, and the financial markets.
Professional Case Management
Your investment funds comprehensive case management, including thorough investigation, evidence gathering, expert analysis, and strategic litigation planning that maximizes your chances of success.
Risk Mitigation Through Numbers
Class actions provide strength in numbers. Your individual risk is reduced because you're part of a larger group with shared interests and resources.
WHAT HAPPENS IF WE WIN?
When a class action succeeds, the recovery typically far exceeds the initial investment. Successful securities class actions can result in settlements or judgments worth millions of naira, distributed among class members based on their individual losses.
Our contingency fee structure means that our additional compensation comes from the recovery, not from your pocket. This creates perfect alignment – we succeed only when you succeed.
WHAT HAPPENS IF WE DON'T WIN?
While no lawyer can guarantee success, the contingency fee structure limits your financial exposure. Beyond your initial contribution, you won't owe additional legal fees if the case is unsuccessful.
MAKING AN INFORMED DECISION
Before joining a class action, consider these factors:
Assess Your Losses: Ensure your potential recovery justifies the investment and effort involved.
Review the Case Merits: Understand the legal theories and evidence supporting the class action.
Consider the Timeline: Class actions can take time to resolve, so be prepared for a potentially lengthy process.
Evaluate the Legal Team: Ensure your lawyers have relevant experience and a track record of success in securities litigation.
MOVING FORWARD
Class actions represent one of the most effective ways for individual investors to seek justice against well-funded corporate defendants. While the upfront costs are significant, they're structured to be accessible and fair, with built-in protections and incentives.
At Abdul Muhammed Law Practice, we believe in transparency about costs because informed clients make better decisions. We're committed to helping Nigerian investors understand their options and pursue justice when they've been wronged.
If you're considering joining a class action or have questions about securities-related losses, we encourage you to reach out for a consultation. Understanding your rights and options is the first step toward potential recovery.
The costs of joining a class action are an investment in justice – both for yourself and for the integrity of Nigeria's financial markets. When corporations know that investors will hold them accountable, it creates a stronger, more trustworthy investment environment for everyone.
For more information about class actions before the IST or to discuss your potential case, contact Abdul Muhammed Law Practice.
We're here to help you understand your options and make informed decisions about pursuing your claims.
ABOUT THE WRITER
Abdulateef Muhammed is the founder of ASM Real Estate Solicitors. He earned his law degree from the University of Lagos in 1997 and was called to the Nigerian Bar in 1998. In 2018, he was appointed a Notary Public for life by the Chief Justice of Nigeria.
From 2022 to 2024, he served as the Vice Chairman of the Nigerian Bar Association, Kabba Branch.
He is the author of several legal and creative works, including:
✅ A Nigerian Lawyer’s Playbook: What Law School Doesn’t Teach About Litigation Practice
✅ Three Short Nigerian Plays (For Simple Staging and Strong Performances)
✅ Foot Rub and Coffee Black ( two full length screenplays published as part of the Nollywood Screenplay Library Series)
✅ His legal writing focuses on uncovering the hidden patterns behind litigation and exploring strategic aspects of legal leverage in Nigeria.