SEC Launches Major Crackdown On 79 Suspected Ponzi Schemes In Nigeria.
The Securities and Exchange Commission (SEC) in Nigeria has initiated a robust investigation into 79 suspected Ponzi schemes operating across the country, delivering a stern warning to those involved in fraudulent investment practices. The announcement, made on Tuesday, underscores the commission’s commitment to safeguarding investors and maintaining the integrity of Nigeria’s financial system.
Among the schemes under scrutiny is FF Tiffany, which faces a separate, in-depth probe following allegations of defrauding thousands of Nigerians, both domestically and in the diaspora. The SEC revealed that preliminary findings suggest FF Tiffany promised investors unrealistically high returns, resulting in losses amounting to billions of naira. The commission described these activities as a significant threat to investor confidence and the stability of the capital market.
Under the newly amended Investment and Securities Act (ISA) 2025, signed into law by President Bola Ahmed Tinubu, those found guilty of operating or promoting Ponzi schemes face severe penalties. Offenders, including influencers and bloggers, could be fined up to ₦20 million or imprisoned for up to 10 years. The SEC is collaborating with law enforcement agencies to ensure perpetrators are brought to justice.
Dr Emomotimi Agama, the SEC’s Director General, has been at the forefront of a nationwide campaign to educate the public about the dangers of unregulated investments. Speaking at a recent outreach event, he urged Nigerians to verify the registration status of any investment platform through the SEC’s website or official channels before committing funds. “If it seems too good to be true, it’s likely not true,” Agama cautioned, highlighting the risks of financial loss and emotional distress caused by fraudulent schemes.
The SEC’s proactive measures include grassroots sensitisation efforts targeting markets, traders, and communities across Nigeria. Agama noted that participants in these campaigns have welcomed the initiative and encouraged its continuation, with many pledging to spread awareness to protect others from falling victim.
The commission reiterated its warning against engaging with unregistered investment platforms promising guaranteed or exaggerated returns, as these schemes lack legal investor protection under Nigerian law. The SEC remains steadfast in its mission to promote fair practices and restore trust in the nation’s capital market, urging the public to report any suspected illegal investment schemes for swift investigation and action.
As the investigations proceed, the SEC has promised to release further details upon their conclusion, ensuring transparency and accountability in tackling this growing menace.
