*Dr. Emomotimi Agama, Director-General of Nigeria’s Securities and Exchange Commission, explains the objective of the Capital market regulator’s new legislation is to strengthen the legal framework, protect investors, and introduce reforms that will promote market integrity, transparency, and sustainable growth

Isola Moses | 绿帽献妻

The Securities and Exchange Commission (SEC) has emphasised objective of its new legislation is to strengthen the legal framework governing Nigeria鈥檚 capital market, protect investors, and introduce reforms that will promote market integrity, transparency, and sustainable growth.

绿帽献妻 reports Dr. Emomotimi Agama, Director-General of SEC, who stated this in Abuja, FCT, warned that promoters and operators of any Ponzi scheme in the West African country risk a penalty of about N20 million, or imprisonment to a term of 10 years or both, upon conviction.

It is also noted that these measures are prescribed by the provisions of the newly signed Investments and Securities Act 2025.

Dr. Agama also explained the SEC hitherto lacked the legal power to prosecute Ponzi scheme operators, which made it difficult to bring offenders to justice.

The Director-General, however, said under the new law, those convicted of operating Ponzi schemes in Nigeria would face a jail term of 10 years or more.

He further stated: 鈥淲ith the new law, they now face a 10-year jail term and beyond.”

The Act, the SEC Chief noted, stipulates a minimum fine of N10 million for anyone operating a Ponzi scheme in Nigeria.

Agama averred: 鈥淪o, N10 million is not the entire penalty or the entire money that will be charged or sanctioned to any suspecting or any accused capital market or non-capital market operator.

“It is just part of the penalties and or the sanctions that will be meted against such persons.”

On application of ‘disgorgement’ against Ponzi scheme operators

The Director-General of SEC highlighted the sanctions against indicted Ponzi scheme operators would include 鈥渄isgorgement鈥�, meaning that any profits or gains obtained from defrauding Nigerians will be recovered.

鈥淚t is not about the quantum of the fraud, it is about sanctions that would deter people from even getting into it,” he stated.

Besides, Agama said the new ISA provide SEC with the power to obtain, and request telephone conversations and all other conversations that are required to Prosecute Ponzi operators in the ecosystem.

He said: 鈥淲e recognise that a lot of Nigerians have fallen prey to these sponsor schemes and the reason why that is the case is because there were no sanctions.

“You know enough to deter them from doing this so what this Act has done is to introduce measures for Ponzi scheme operators and intending Ponzi scheme operators not to be able to do this again against the wish and will of Nigerians.”

SEC’s responsibility to protect market investors

Underlining the market regulatory Commission’s power to enforce actions, Dr. Agama said: 鈥淧rotecting the investors in Nigeria is a cardinal responsibility of the SEC and this law has provided the SEC with stronger powers to be able to do that.

“This law has also been able to provide the SEC with the power to be able to search phones and get phone records for people who are interested in dealing with Nigerians or interested in duping Nigerians.

“We are able to get these records and quickly provide enforcement actions for the people that are involved so for us it is limitless.”

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