The Securities and Exchange Commission (SEC) has reaffirmed its commitment to strengthen collaboration with law enforcement agencies to identify and prosecute promoters of Ponzi schemes in line with the Investments and Securities Act (ISA) 2025.
Speaking at the SEC’s Journalists’ Academy 2025 in Lagos, Mr. John Achile, Divisional Head, Legal and Enforcement, said the commission would work closely with the Nigeria Police Force, the EFCC, and the Office of the Attorney General of the Federation, among others, to ensure thorough criminal investigation and prosecution of fraudulent operators.
Achile highlighted that SEC will continue to freeze accounts and seal the offices of Ponzi scheme operators to prevent further losses to unsuspecting investors. He explained that Ponzi schemes often rely on the funds of new investors to pay returns to existing participants and are typically accompanied by fake or incomplete documentation. Such schemes promise high returns with little or no risk, often remain unregistered, and are run by promoters unknown to regulatory authorities.
He warned Nigerians to exercise caution and conduct thorough due diligence before investing in any opportunity, particularly those marketed as “get-rich-quick” schemes. According to Achile, Ponzi schemes can take the form of investments in agriculture, cryptocurrencies, gold, and other precious commodities.
He further stressed that Ponzi schemes not only cause substantial financial losses to investors but also undermine confidence in the financial markets, weaken trust in regulators and government, divert savings, reduce bank deposits, and contribute to broader socio-economic challenges. Achile called on all investors to verify the legitimacy of investment opportunities with the appropriate regulatory authorities before committing their funds.
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