The Securities and Exchange Commission has warned that individuals and entities promoting or operating ponzi schemes in Nigeria now face severe penalties, including a minimum jail term of 10 years or a fine of at least ₦20 million, or both.
The penalties are part of the provisions of the newly enacted Investments and Securities Act (ISA) 2025, which aims to strengthen Nigeria’s capital market by introducing stricter measures against fraudulent financial schemes.
Speaking in an interview in Abuja, the General Director of SEC, Emomomimi Agama, emphasized that the law granted higher power to pursue ponzi programme executives, a big progress in protecting investors.
“Previously, the SEC had no legal authority to prosecute Ponzi mode operators, which makes it difficult to bring offenders to justice. But with this new law, they are currently facing a judgment for 10 years and more,” Agama said.
In addition to a fine of ₦20 million, offenders will lose illegal profits from investors in the scam.
“The penalty of ₦20 million only represents sanctions on individuals or companies found guilty for organizing a Ponzi programme.
“The law also requires that all profits obtained through fraudulent means be recovered,” he stated.
The SEC boss also highlighted new enforcement powers granted under the Act, including the ability to access telephone records and digital communications to track down fraudsters.
“We recognize that many Nigerians have fallen victim to Ponzi schemes due to a lack of strict penalties.
“This law introduces deterrents that will discourage fraudulent activities. The SEC now has the authority to obtain phone records and other vital information needed to prosecute offenders swiftly,” he added.
Agama reiterated that the primary goal of the ISA 2025 is to enhance market integrity, transparency, and sustainable growth while ensuring investor protection remains a top priority.
The updated regulation reinforces the SEC’s role as the top authority in Nigeria’s capital market, enhancing its ability to ensure a just, effective, and honest investment landscape.
It brings Nigeria’s rules in line with global standards and boosts methods to mitigate overall risks in the financial industry.