The Securities and Exchange Commission (SEC) has announced a renewed and robust campaign to dismantle Ponzi schemes across Nigeria, pledging stronger collaboration with major law-enforcement agencies to trace, arrest, and prosecute perpetrators under the enhanced provisions of the Investments and Securities Act (ISA) 2025.
The Divisional Head, Legal and Enforcement of SEC, Mr. John Achile, made this known at the 2025 SEC Journalists’ Academy in Lagos. He said the Commission is intensifying its surveillance and enforcement operations to ensure that illegal investment promoters do not continue to prey on unsuspecting Nigerians.
Achile explained that the SEC is working more closely with the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), and the Office of the Attorney-General of the Federation to improve intelligence sharing, criminal investigation, prosecution, and asset recovery.
According to him, the Commission will sustain its policy of freezing bank accounts, sealing operational bases, and shutting down digital channels used by Ponzi operators. These measures, he said, are crucial for restoring confidence in the financial system and protecting the savings of millions of Nigerians.
Warning Signs of a Ponzi Scheme
While speaking on the topic “Combating Investment Fraud, Ponzi Schemes and Illegal Investments,” Achile outlined the key features of Ponzi operations, stressing that they rely on the continuous recruitment of new investors to pay older ones — a model that always collapses.
He identified other common red flags:
- Unusually high and guaranteed returns with little or no risk
- Fake or incomplete investment documentation
- Claims of consistent positive returns despite economic downturns
- Operators who are unknown, unlicensed or unregistered with regulators
- Lack of transparency about business operations or fund utilisation
He advised Nigerians to avoid “get-rich-quick” platforms and verify any investment claims with the appropriate regulatory bodies before committing their money.
How Fraudulent Schemes Are Disguised
Achile noted that modern Ponzi schemes are often dressed up as legitimate ventures, including:
- Agricultural investment and value-chain projects
- Cryptocurrency and Bitcoin-based offerings
- Gold coins, gemstones, and other commodity-linked investments
He warned that these fraudulent schemes have caused severe financial losses, weakened trust in government institutions, and reduced deposits within the commercial banking system.
Protecting Market Integrity
According to Achile, Ponzi schemes undermine national financial stability by diverting savings from genuine economic activities. He stressed that SEC will continue to deploy stronger investor protection mechanisms and public sensitisation as Nigeria enters a new era under the ISA 2025.
The SEC Journalists’ Academy 2025, themed “The ISA 2025 and the Future of Nigeria’s Capital Market: Innovation, Protection and Growth,” convened regulators, journalists, analysts, and capital-market stakeholders to discuss emerging threats and reform strategies for investor safety.
SEC Nigeria, Ponzi Schemes, Investment Fraud, EFCC, ISA 2025, Capital Market Regulation, Illegal Investments, Financial Crime Nigeria, SEC Enforcement, Investment Protection, Nigeria Police, Investor Education
The Securities and Exchange Commission (SEC) has intensified its crackdown on Ponzi schemes in Nigeria, strengthening collaboration with the EFCC, Police, and the Attorney-General’s office to prosecute perpetrators under the ISA 2025 while warning investors to avoid high-risk fraudulent schemes.
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