SEC Intensifies Efforts Against Ponzi Schemes Nationwide

The Securities and Exchange Commission (SEC) Nigeria has intensified its crackdown on Ponzi schemes, emphasizing that collaboration with law enforcement is key to protecting investors and maintaining confidence in the capital market. This announcement was made at the SEC Journalists’ Academy 2025 in Lagos by John Achile, Divisional Head of Legal and Enforcement.

According to Achile, the surge in fraudulent investment activities, including schemes disguised as agriculture, cryptocurrency, and precious metal investments, has prompted the commission to strengthen partnerships with the Nigeria Police Force, the EFCC, and the Office of the Attorney General of the Federation. “We are working closely with these agencies to investigate, freeze accounts, and prosecute promoters of Ponzi schemes,” he said.

The move comes in line with the Investments and Securities Act (ISA) 2025, which criminalized Ponzi schemes and prescribed severe penalties including imprisonment and heavy fines for violators. Achile urged Nigerians to exercise caution and perform due diligence before investing, warning that such schemes often promise high returns with little or no risk and undermine both financial markets and public trust.

SEC Nigeria explained that its approach combines legal enforcement, advanced surveillance, and public awareness campaigns, ensuring that investors nationwide can recognize and avoid fraudulent schemes. The commission emphasized that collaboration and vigilance are essential to curbing illegal investments and safeguarding the economy.

“The fight against Ponzi schemes is not the responsibility of SEC alone; it requires the active participation of law enforcement, regulators, and the public,” Achile said.

By implementing these measures, SEC hopes to restore confidence, protect savings, and strengthen the integrity of Nigeria’s capital markets, ensuring that investors across the country can engage in legitimate financial activities safely.