SEC Threatens Crackdown on Ponzi Scheme Promoters in Nigeria

The Securities and Exchange Commission (SEC) in Nigeria, through its Legal Enforcement Division Head, John Achil, is intensifying efforts to clamp down on promoters of Ponzi schemes in the country. The SEC is working closely with key law enforcement agencies, including the Nigeria Police Force and the Attorney General's office, to investigate and prosecute individuals involved in illegal investment schemes.

The move is in line with the provisions of the Investment Securities Act 2025. The SEC aims to freeze bank accounts and seal offices linked to illegal investment operations, warning Nigerians to be cautious of high-return, low-risk schemes.

Recent reports estimate losses of up to 1.3 trillion naira due to fraudulent investment platforms.