The Securities and Exchange Commission has warned that anyone caught operating a Ponzi scheme in Nigeria will face a minimum fine of ₦20 million or at least 10 years in prison, or both, under the newly signed Investments and Securities Act (ISA) 2025.
The Director-General of SEC, Dr. Emomotimi Agama, stated this in Abuja, saying that the new law was introduced to strengthen Nigeria’s capital market, protect investors, and promote transparency.
He explained that in the past, SEC did not have the power to prosecute Ponzi scheme operators, making it difficult to punish offenders. However, with the new law, they now face strict penalties.
“With the new law, they now face a 10-year jail term and beyond,” Agama said.
He added that the Act also sets a minimum fine of ₦10 million for anyone running a Ponzi scheme.
“So, ₦10 million is not the entire penalty or the total fine that will be imposed on any suspect. It is just part of the punishment and sanctions,” he explained.
Agama also mentioned that apart from fines and prison terms, the law includes “disgorgement,” which means that any money fraudulently collected from Nigerians must be returned.
“It is not just about the amount of fraud but about having strict punishments that will stop people from engaging in such schemes,” he said.
The SEC Director-General also revealed that the new law gives SEC the power to obtain and review telephone conversations and other records needed to prosecute Ponzi scheme operators.
“We recognize that many Nigerians have been victims of these Ponzi schemes because there were no strong penalties to stop them. But with this Act, we have introduced strict measures to ensure that Ponzi scheme operators can no longer take advantage of Nigerians,” Agama stated.
He assured Nigerians that SEC is committed to protecting investors and using its new powers to take action against fraudsters.
