The Securities and Exchange Commission (SEC) has declared war on Ponzi scheme operators and fraudulent investment promoters, warning that it now has the legal backing to prosecute offenders with severe penalties.
With the newly enacted Investment and Securities Act (ISA) 2025, the commission now possesses the authority to clamp down on financial fraudsters, ensuring that justice is served.
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During an interview on Arise TV, the Director-General of SEC, Emomotimi Agama, revealed that the act, signed into law by President Bola Tinubu, strengthens the commission’s ability to take decisive action against those who deceive Nigerians with fake investment schemes. He warned that offenders would now face a minimum of 10 years in prison, a fine of N40 million, and other harsh sanctions.
Before the introduction of this law, SEC lacked the legal framework to prosecute Ponzi scheme operators effectively. Many fraudulent investment promoters took advantage of this loophole to scam unsuspecting Nigerians, leaving them with devastating financial losses. However, Agama stated that those days are over, as the new law ensures that fraudulent gains are recovered and returned to victims.
“With the new law, offenders will not only face a 10-year jail term but will also be forced to return every profit and gain made from defrauding Nigerians. It’s not just about the fine; it’s about making sure that crime does not pay,” Agama said.
He further explained that SEC now has greater investigative powers, including the ability to obtain crucial evidence such as telephone conversations to strengthen prosecution. These measures, he added, will serve as a deterrent to financial criminals while boosting investor confidence in Nigeria’s capital market.
Beyond cracking down on fraudsters, the new act also introduces reforms aimed at making capital markets more accessible for state governments.
Agama pointed out that in the past, stringent regulations made it difficult for state governments to raise funds for developmental projects. However, the revised law removes these barriers, allowing them to access capital markets for infrastructure and economic growth.
“If state governments cannot raise the necessary funds, development will stall. The new ISA 2025 relaxes restrictive rules, enabling them to attract investment for vital projects that benefit Nigerians. The capital market is the engine of any thriving economy, and we are ensuring that it works for everyone,” he stated.
He also highlighted how the updated regulatory framework aligns Nigeria with global best practices, making the country more attractive to foreign investors.
Additionally, the act introduces composite and non-composite exchanges, which will provide structured avenues for businesses of all sizes to participate in the market, ensuring smoother investment and exit opportunities.
With these sweeping reforms, SEC is sending a clear message to fraudsters—there is no hiding place. The commission is now fully equipped to track, prosecute, and punish those who exploit innocent Nigerians through deceptive financial schemes.
