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In Nigeria, those promoting Ponzi schemes now face serious consequences thanks to the newly enacted Investment and Securities Act (ISA) 2025. With the law signed by President Bola Tinubu, the Securities and Exchange Commission (SEC) has gained the power to tackle fraudulent investment schemes head-on. SEC’s Director General, Emomotimi Agama, recently highlighted the severe penalties awaiting Ponzi promoters, including a minimum 10-year prison sentence and a hefty fine of N40 million.
Before the new Act, the SEC lacked the legal framework to pursue Ponzi scheme operators effectively, leaving many victims without justice. But with the updated law, the SEC can now secure not just monetary fines but also “disgorgement” — the process of recovering any ill-gotten gains from fraudsters. Agama emphasized that these penalties aren’t just about the amount stolen but about setting a strong deterrent to prevent future fraud.
This change also empowers the SEC to use evidence like phone conversations in prosecuting offenders, a move aimed at strengthening their ability to bring fraudsters to justice. It’s not just about punishing wrongdoers but ensuring that Nigerians can feel confident investing in the country’s markets again.
On another front, Agama discussed how the new law also helps state governments access capital markets more easily. In the past, strict rules tied to a state’s previous year’s revenue made it tough for local governments to raise funds for infrastructure projects. The new Act removes these barriers, allowing states to tap into capital markets and fund developmental projects. This could be a game-changer for improving infrastructure across the country, benefiting citizens everywhere.
Agama also stressed that the law brings Nigeria’s regulations in line with global best practices, which can help position the country as a competitive investment destination. The updated framework also supports a broader range of companies, making it easier for them to list on exchanges and attract investors.
The SEC’s bold new approach sends a strong message: fraudulent investment schemes will no longer be tolerated, and the commission is now equipped to hold wrongdoers accountable.
Article updated 3 weeks ago. Content is written and modified by multiple authors.
