Negligence Liability of Financial Advisers in Investment Disputes in Abuja

Professional negligence claims against financial advisers have increased considerably in Nigeria as retail investment products have proliferated and investor losses have grown following market volatility. This study examines the tortious liability of financial advisers for negligent investment advice in Abuja, evaluating the duty of care, standard of care, and causation requirements in professional negligence claims within the investment advisory context. Using a doctrinal methodology supplemented by analysis of decided cases from the Investment and Securities Tribunal and the Federal High Court between 2019 and 2024, the research assesses how Nigerian courts have applied the Bolam and Caparo tests to financial advisory relationships. The study further analyses 30 formal complaints submitted to the Securities and Exchange Commission against registered investment advisers in Abuja over the same period. Findings reveal that Nigerian investors face significant barriers in establishing the standard of care owed by financial advisers, partly due to the absence of statutory investment advice standards and partly because investors frequently lack documentary evidence of the advice given. Recommendations include mandatory written investment advice requirements, the adoption of a fiduciary standard for investment advisers, mandatory professional indemnity insurance, and the establishment of a dedicated financial services ombudsman in Nigeria. Keywords: financial advisers, negligence liability, investment advice, Securities and Exchange Commission, professional negligence