The Securities and Exchange Commission (SEC) has announced that under the newly enacted Investments and Securities Act (ISA) 2025, individuals found guilty of operating Ponzi schemes in Nigeria now face stricter penalties, including a minimum fine of ₦20 million and a prison sentence of at least 10 years.
SEC Director-General, Dr. Emomotimi Agama, emphasized that before this legislation, the commission lacked the authority to effectively prosecute Ponzi scheme operators, allowing many fraudulent schemes to proliferate unchecked.
The new law empowers the SEC with enhanced investigative capabilities, including access to telephone records and other communications, to facilitate the prosecution of offenders.
In addition to the financial penalties and imprisonment, the Act introduces a “disgorgement” provision, mandating that any profits or gains obtained through fraudulent activities be recovered from convicted individuals. Dr. Agama highlighted that the objective is not solely to punish offenders but to establish deterrent measures that prevent fraudulent activities in the capital market.
