SEC Pledges Stronger Action Against Ponzi Schemes to Protect Nigerian Investors
The Securities and Exchange Commission (SEC) has reinforced its commitment to protecting Nigerian investors by pledging stronger collaboration with law enforcement agencies to identify and prosecute promoters of Ponzi schemes. Speaking at the Commission’s Journalists’ Academy 2025 in Lagos, Mr. John Achile, head of Legal and Enforcement, emphasized that the SEC will work closely with the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), and the Office of the Attorney General of the Federation to combat fraudulent investment activities.
Achile highlighted that Ponzi schemes are deceptive operations that rely on funds from new investors to pay returns to earlier participants. Often, investors are presented with incomplete or falsified documents and lured by promises of high returns with little or no risk. “Ponzi schemes could take the form of agricultural investments, cryptocurrency, gold, or other digital currencies,” he warned, urging Nigerians to perform thorough due diligence before committing their money.
The SEC official explained that these schemes not only defraud individuals but also undermine confidence in the country’s financial markets. They reduce deposits in commercial banks, divert savings, and cause massive economic losses, creating a ripple effect of socio-economic problems. The commission is therefore committed to freezing accounts and sealing offices linked to Ponzi scheme operators to halt their activities swiftly.
Achile called on investors to verify the legitimacy of any investment opportunities with regulatory agencies. “Always confirm whether an investment is registered and the promoters are known to regulators,” he advised. This measure, he stressed, is crucial to protecting personal wealth and maintaining trust in Nigeria’s financial system.
Through strengthened inter-agency collaboration, the SEC aims to send a strong message that fraudulent investment activities will not be tolerated. By combining regulatory oversight with law enforcement action, the commission seeks to deter future scams and restore confidence among investors across the country.
source: Leadership