The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has issued a stern warning to Nigerians: registration with the Corporate Affairs Commission (CAC) or possession of a SCUML certificate from the Economic and Financial Crimes Commission (EFCC) does not authorise any company to operate an investment scheme.
Speaking at a sensitisation tour in Garki Market, Abuja, Agama lamented the growing menace of Ponzi schemes and vowed that the government would no longer tolerate firms exploiting regulatory gaps to defraud citizens. “If it sounds too good to be true, it probably is,” he warned.
He reminded the public that only SEC registration confers legal standing on investment operators. The newly signed Investments and Securities Act mandates a N20 million fine or 10-year jail term for Ponzi promoters.
SEC Assistant Director, Tope Onwionoko, highlighted the importance of financial literacy, noting that many victims fall prey due to lack of knowledge, not just economic hardship.
