The Securities and Exchange Commission (SEC) of Nigeria is remodelling its crackdown strategy for Ponzi and pyramid schemes throughout 2025.
It is announced that it will introduce a reinforced and robust plan to stop the activities of those who intentionally swindle Nigerians of their money.
Several Nigerians have fallen for Ponzi schemes in the last due to financial illiteracy and concerns are growing.
More so, fraudulent investment operations have left many poorer than ever.
The SEC’s renewed focus aims to protect investors, enhance market transparency, and foster legitimate investment opportunities across the country.
In a recent statement, SEC Director-General Dr. Emomotimi Agama emphasized that investor protection remains the cornerstone of the Commission’s mission.
He outlined plans to overhaul investigative processes to improve efficiency in detecting and prosecuting offenders.
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SEC – New Regulatory Framework Against Ponzi Schemes
The SEC is also set to strengthen regulatory frameworks to ensure greater transparency and accountability in securities transactions, which are vital for boosting investor confidence.
A key legislative development empowering the SEC is the newly enacted Investments and Securities Act (ISA) 2025. This law grants the Commission enhanced enforcement powers, including the ability to impose severe penalties on Ponzi scheme operators.
Under the ISA, offenders face a minimum fine of ₦20 million, up to 10 years imprisonment, or both. Additionally, the SEC can recover any illegally obtained funds, aiming to deter fraudulent activities decisively.
Beyond enforcement, the SEC is committed to public education campaigns to raise awareness about the dangers of Ponzi schemes, particularly targeting grassroots communities vulnerable to such scams.
Officials have engaged directly with traders and investors, emphasizing the importance of informed financial decisions.
The SEC also plans to improve the functioning of the Investments and Securities Tribunal to ensure timely and fair resolution of market disputes.
These comprehensive measures are designed to create a safer, more transparent investment environment, restore trust in Nigeria’s capital markets, and support sustainable economic growth in 2025 and beyond.
