The SEC has warned that Ponzi scheme operators in Nigeria could face a 10-year jail term and N20 million fine under the new Investments and Securities Act 2025. The new law strengthens enforcement measures to protect investors and ensure market integrity, with additional provisions for recovering ill-gotten gains.
The Securities and Exchange Commission (SEC) has introduced stricter penalties for Ponzi scheme operators in Nigeria, warning that offenders could face at least 10 years in prison or a fine of N20 million. This move comes under the newly signed Investments and Securities Act 2025, which aims to enhance investor protection and market integrity.
According to SEC Director-General Dr. Emomotimi Agama, past enforcement efforts were hindered by weak legal provisions that limited the agency’s ability to prosecute fraudsters. However, the updated legislation grants SEC broader authority to crack down on illicit investment schemes, including recovering stolen funds from operators who defraud investors.
The new law also expands SEC’s investigative reach, allowing the agency to obtain records of financial communications to support prosecutions. Agama stressed that the objective is not just to punish offenders but to create a strong deterrent against fraudulent financial schemes that have previously deceived many Nigerians.
By reinforcing regulatory measures, SEC hopes to restore trust in the financial sector and prevent unsuspecting investors from falling prey to scams. The agency has urged the public to remain cautious and report suspicious investment schemes to authorities.
