Securities and Exchange Commission (SEC) has reaffirmed its commitment to intensify inter-agency collaboration in identifying and prosecuting promoters of Ponzi schemes, in line with the provisions of the Investments and Securities Act (ISA) 2025.
Ponzi Scheme
Mr John Achile, Divisional Head, Legal and Enforcement of SEC, made this known at the Commission’s Journalists’ Academy 2025 in Lagos.
Achile said the Commission would strengthen partnerships with law enforcement agencies including the Nigeria Police Force, Economic and Financial Crimes Commission (EFCC), and the Office of the Attorney General of the Federation to ensure criminal investigation and prosecution of offenders.
He noted that SEC would continue to freeze accounts and seal offices of perpetrators of fraudulent investment schemes.
Speaking on the topic “Combating Investments Fraud, Ponzi Schemes and Illegal Investments,” Achile explained that Ponzi schemes thrive on the inflow of new investors’ funds to pay existing investors, often backed by fake or incomplete documents.
He listed other features of Ponzi schemes to include promises of high returns with little or no risk, consistent positive returns despite economic difficulties, lack of registration with regulatory agencies, and promoters unknown to regulators.
Achile urged Nigerians to conduct thorough due diligence and be wary of “get-rich-quick” promises, stressing the need to verify claims with regulators before investing.
He warned that Ponzi schemes could be disguised as investments in agriculture, cryptocurrency, gold coins, or precious stones, adding that such schemes undermine confidence in financial markets, reduce deposits in banks, divert savings, and cause huge losses to investors with attendant socio-economic problems.
The Journalists’ Academy 2025 has the theme: “The ISA 2025 and The Future of Nigeria’s Capital Market: Innovation, Protection, and Growth.”
