SEC Intensifies Crackdown on Ponzi Schemes, Boosts Collaboration to Protect Nigerian Investors

The Securities and Exchange Commission has renewed its commitment to tackling Ponzi schemes in Nigeria by strengthening collaboration with key law enforcement agencies. The commission said the move aligns with the provisions of the Investments and Securities Act 2025, which criminalises fraudulent investment operations and imposes strict penalties on offenders.

Speaking at the SEC Journalists’ Academy 2025 in Lagos, the SEC’s Divisional Head of Legal and Enforcement, Mr. John Achile, stressed that inter-agency cooperation remains central to identifying and prosecuting promoters of illegal investment schemes. He noted that the commission is not only focused on detection but also on curbing the spread of such schemes across the country.

The ISA 2025 empowers the SEC to take stronger enforcement actions against Ponzi operators, including freezing their bank accounts and shutting down offices used for fraudulent activities. Achile explained that the commission continues to work closely with the Nigeria Police Force, the Economic and Financial Crimes Commission and the Office of the Attorney General of the Federation to ensure that perpetrators face criminal prosecution.

During his presentation on the topic, “Combating Investment Fraud, Ponzi Schemes and Illegal Investments,” Achile highlighted the common red flags that Nigerians should watch out for. These include promises of extremely high returns with little or no risk, unregistered investment platforms, unverifiable promoters, and fake or incomplete documentation. He warned that Ponzi schemes often disguise themselves as legitimate ventures in agriculture, cryptocurrency, precious metals, and other high-interest sectors.

Achile urged Nigerians to remain vigilant and carry out adequate due diligence before investing in any scheme. He noted that Ponzi schemes not only devastate victims financially but also erode trust in the nation’s capital markets, weaken confidence in regulators and government institutions and create broader socio-economic challenges. He encouraged investors to always verify claims with the appropriate regulatory bodies before committing their funds.

source: punch