SEC Proposes N20M Fine, Jail Terms for Ponzi Operators

The Securities and Exchange Commission (SEC) has proposed severe penalties for Ponzi scheme operators in the Investments and Securities Bill (ISB) 2024, currently before the National Assembly.

The bill which aims to prevent illegal fund managers from fleecing unsuspecting Nigerians of their hard-earned money proposes a fine of at least N20 million, up to 10 years’ imprisonment, or both.

Director-General of the Commission, Emomotimi Agama made the announcement during a public hearing on the bill in Abuja on Thursday. He stated that the bill specifically targets the prohibition of Ponzi and pyramid schemes, alongside other illegal investment operations, to prevent fraudulent activities that deceive and exploit Nigerians.

Agama further noted that the ISB 2024 aims to address gaps in the 2007 version of the bill, introducing stronger provisions to improve clarity and enhance the global competitiveness of Nigeria’s capital market. The bill is also designed to support national economic transformation by modernizing the country’s financial systems.