The Securities and Exchange Commission (SEC) has warned that operators and promoters of Ponzi schemes in Nigeria risk a minimum fine of N20 million or a 10-year jail term, or both.
The Director-General of SEC, Emomotimi Agama, stated this in a statement on Tuesday, noting that the penalty is part of the newly signed Investments and Securities Act (ISA) 2025, recently assented to by President Bola Tinubu.
According to Agama, the new law strengthens the legal framework of Nigeria’s capital market, empowering the commission to prosecute fraudulent investment scheme operators, a challenge it previously faced.
“So, N20 million is not the entire penalty or the entire money that will be charged or sanctioned to any accused capital market or non-capital market operator,” Agama explained.
“Any profits or gains obtained from defrauding Nigerians will be recovered because it is not about the quantum of the fraud; it is about sanctions that will deter people from even getting into it.”
He emphasized that the act aims to protect investors, promote market integrity, and align Nigeria’s financial regulations with international best practices.
The ISA 2025 replaces the Investments and Securities Act No. 29 of 2007, introducing transformative provisions to boost transparency and sustainable growth in the capital market.
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