ABSTRACT
Finance is the key to investment and growth hence the need for efficient financial systems to help development. Nigeria's financial system comprises the money and capital markets that serve it. These two sub-sectors create financial assets and liabilities by intermediating between surplus and deficit units in the economy. While the money market is where short term loans are sourced, the capital market is one for medium and long term funds. The Nigerian capital market like other capital markets in the world is sustained by the level of investment that drives it. Investment is fundamental to the growth and development of any economic entity. The returns on investments benefit the individual and have multiplier effects on the society at large. This dissertation examines the legal framework for combating fraudulent investment schemes in the Nigerian Capital Market by employing the doctrinal method of research. The upsurge in fraudulent investment schemes in the Nigerian capital market has virtually impacted all aspects of the country, ranging from money loss; leakage in the financial system; undermining confidence in the market and psychological effects on the investor among others. Despite the numerous laws and institutions in place to help in the fight, fraudulent investment schemes continue to plague the Nigerian capital market. This research finds that this can be attributed to the ignorance displayed by investors at identifying genuine investment schemes. There is therefore, the need for the Securities and Exchange Commission to embark on massive investors' enlightenment campaign to educate investors and potential investors about investment schemes.