The Securities and Exchange Commission is set to apply a more aggressive approach in combating Ponzi schemes following the recent enactment of the Investment and Securities Act (ISA 2025), which President Bola Tinubu signed into law.
The new legal framework empowers the SEC to prosecute promoters of Ponzi schemes, with potential sentences of up to 10 years in prison.
SEC Director-General Emomotimi Agama revealed the new provisions during a Tuesday interview on Arise TV, emphasising the significance of the law in addressing the long-standing challenge of prosecuting Ponzi operators in Nigeria.
According to Agama, prior to the passage of the law, the SEC lacked the necessary legal backing to take action against Ponzi schemes, making it difficult to bring offenders to justice.
