The Securities and Exchange Commission (SEC) has issued a stern warning to promoters and operators of Ponzi schemes in Nigeria, stating they could face fines of up to N20 million or prison sentences of 10 years or more under the newly signed Investments and Securities Act 2025. SEC’s Director-General, Dr. Emomotimi Agama, explained that this law aims to strengthen the nation’s capital market, enhance investor protection, and promote transparency and sustainable growth.
Previously lacking the legal power to prosecute Ponzi scheme operators, the SEC now has the authority to pursue offenders under the new legislation. Convicted individuals could face not only hefty fines but also imprisonment, with penalties including “disgorgement” to recover ill-gotten gains. The SEC also has the power to access phone records and communications, enhancing their ability to prosecute fraudsters swiftly.
Dr. Agama emphasized that the reforms will protect Nigerian investors and ensure that those who attempt to defraud the public will be deterred by these robust sanctions.
