Nigerian President Bola Tinubu has signed the new Investment and Securities Act 2025, empowering the SEC to prosecute Ponzi scheme promoters with a minimum 10-year sentence.
Introduction of the New Law
The signed Investment and Securities Act 2025 empowers Nigeria's Securities and Exchange Commission (SEC) to prosecute Ponzi scheme operators. This significant legislative change addresses the previous lack of legal backing for the SEC to take decisive actions against such offenders.
Imposed Sanctions and Penalties
According to the new law, Ponzi scheme operators face a minimum 10-year imprisonment and a fine of N40 million. However, as explained by SEC Director-General Emomotimi Agama, the penalties will also include disgorgement of any illegally obtained profits.
Objectives of the Law
The new law aims to bolster investor confidence in Nigeria by enhancing protection measures. SEC now has a mandate to remove fraudsters from the capital market, ensuring investors have greater confidence in adhering to regulations.
The Investment and Securities Act 2025 marks a critical move towards combating fraudulent schemes in Nigeria. The SEC is now empowered to effectively protect investors and prosecute those violating the law.
