New Law Puts Ponzi Scheme Operators at Risk of 10-Year Jail Term, N40 Million Fine – SEC DG

New Law Puts Ponzi Scheme Operators at Risk of 10-Year Jail Term, N40 Million Fine – SEC DG

The Director-General of the Securities and Exchange Commission (SEC), Mr. Emomotimi Agama, has revealed that under the newly enacted Investment and Securities Act (ISA 2025), promoters of Ponzi schemes in Nigeria now face severe penalties, including a minimum of 10 years in prison. In an interview with Arise TV, Agama highlighted that prior to the law, the SEC had limited authority to prosecute such operators, making enforcement challenging.

Under the new legislation, anyone found guilty of running a Ponzi scheme will be fined up to N40 million. Agama further explained that this fine is just one part of the sanctions, as the law also mandates the recovery of all illicit profits through disgorgement, ensuring that victims are compensated as much as possible.