Investors urged to verify schemes before investing as regulators pledge stricter enforcement under ISA 2025.
The Securities and Exchange Commission (SEC) has reaffirmed its commitment to collaborating with law enforcement agencies to clamp down on Ponzi schemes and illegal investment operators across Nigeria.
John Achile, the SEC’s Divisional Head for Legal and Enforcement, made the statement during the commission’s Journalists’ Academy 2025 in Lagos, themed “The ISA 2025 and The Future of Nigeria’s Capital Market: Innovation, Protection, and Growth.”
Speaking on the session titled “Combating Investment Fraud, Ponzi Schemes, and Illegal Investments,” Achile said the SEC will intensify efforts to identify, prosecute, and dismantle Ponzi operators in accordance with the Investments and Securities Act (ISA) 2025.
“The SEC will work closely with the Economic and Financial Crimes Commission (EFCC), Nigeria Police Force (NPF), and the Attorney General’s office to ensure these illegal schemes are eradicated,” he said.
Enforcement Measures
Achile noted that the SEC routinely freezes accounts and seals the offices of perpetrators, who often rely on funds from new investors to pay returns to existing ones. He explained that these schemes typically involve fake or incomplete documentation, promise unusually high returns with little risk, and remain unregistered with regulators with promoters often unknown.
The SEC official urged Nigerians to verify investments with the relevant regulatory bodies before committing funds and exercise caution with “get-rich-quick” schemes.
“Ponzi schemes could be structured as investments in agriculture or agro-processing, Bitcoin or other cryptocurrencies, or even in gold coins and precious stones,” he explained.
Economic and Social Impacts
Achile emphasized that Ponzi schemes not only cause financial losses but also undermine market confidence and can lead to broader socio-economic challenges.
The SEC has previously warned investors about AI-driven scams that exploit technology to promise guaranteed profits, often featuring fake celebrity endorsements. The commission said such schemes further highlight the need for vigilance and regulatory oversight.
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