Individuals who promote and operate entities involved in illicit investment schemes are subject to a penalty of at least N20 million or imprisonment for a term of 10 years, or both.
Dr. Emomotimi Agama, the Director-General of the Securities and Exchange Commission (SEC), stated that this provision is included in the recently enacted Investments and Securities Act (ISA) 2025.
He asserted that the new Act will strengthen the legal framework governing Nigeria’s capital market. Agama explained that the commission previously lacked the legal authority to prosecute operators of Ponzi schemes, which hindered the ability to bring offenders to justice.
He said the Act would enable the commission to better safeguard investors and implement reforms that promote market integrity, transparency, and sustainable growth.
“Therefore, N20 million does not represent the entirety of the penalty or the total amount that will be levied or sanctioned against any individual suspected or accused of violations within the capital market or outside of it.
“It is merely a component of the penalties and/or sanctions that will be imposed on such individuals.
“Any profits or gains derived from defrauding Nigerians will be recovered, as the focus is not solely on the magnitude of the fraud but also on sanctions that will deter people from engaging in such activities.
“We acknowledge that numerous Nigerians have fallen victim to these schemes, and this is largely attributable to the absence of stringent sanctions.
“Protecting investors in Nigeria is a fundamental responsibility of the SEC, and this law has equipped the SEC with enhanced powers to fulfill that responsibility,” he said.
The director-general also stated that the Act introduces transformative provisions designed to further align Nigeria’s market operations with international best practices.
