SEC partners agencies to end Ponzi menace

The Securities and Exchange Commission has vowed to intensify collaboration with law enforcement and prosecutorial agencies to track down and prosecute promoters of Ponzi schemes, as Nigeria steps up enforcement under the Investments and Securities Act 2025.

The Commission’s Divisional Head, Legal and Enforcement, Mr. John Achile, made this pledge on Wednesday in Lagos at the SEC Journalists’ Academy 2025, where he disclosed that the regulator is strengthening inter-agency cooperation to stem the rising tide of investment fraud.

Achile said the Commission is working closely with security and anti-graft bodies, including the Nigeria Police Force, the Economic and Financial Crimes Commission and the Office of the Attorney General of the Federation, to ensure that perpetrators of fraudulent investment schemes face criminal investigation and prosecution.

“We will continue to freeze accounts, seal up offices and pursue criminal prosecution in collaboration with relevant agencies,” Achile said, stressing that the Commission would no longer tolerate operators who prey on unsuspecting investors under the guise of high-yield investments.

Speaking on the theme, “Combating Investment Fraud, Ponzi Schemes and Illegal Investments,” Achile warned that Ponzi schemes thrive on deception, explaining that they require a continuous inflow of new investors to pay off earlier participants. According to him, victims are often issued fake or incomplete documentation, while promoters typically dangle unusually high returns with little or no risk.

He listed other red flags to include consistent promises of positive returns regardless of economic conditions, lack of registration with appropriate regulatory authorities, and promoters who are unknown to regulators.

Achile urged Nigerians to exercise caution and carry out proper due diligence before committing funds to any investment opportunity. “People must be skeptical of ‘get-rich-quick’ promises. Always confirm from the relevant regulators before investing,” he warned.

The SEC official further revealed that modern Ponzi schemes are increasingly being disguised as investments in agriculture and agro-processing, Bitcoin and other cryptocurrencies, digital assets, gold coins and precious stones, making detection more difficult for unsuspecting members of the public.

Beyond individual losses, Achile noted that Ponzi schemes pose a serious threat to the wider economy, as their collapse often leads to erosion of confidence in the financial system, loss of trust in regulators and government, reduced deposits in commercial banks, diversion of household savings and severe socio-economic dislocation.

The Journalists’ Academy 2025, where the warning was issued, is themed: “The ISA 2025 and the Future of Nigeria’s Capital Market: Innovation, Protection, and Growth.” The gathering brought together market operators, regulators and media professionals to deepen understanding of the new legal framework governing Nigeria’s capital market.

With the renewed enforcement push, the SEC signalled that the era of impunity for Ponzi operators is drawing to a close, as coordinated action tightens the noose around illegal investment schemes across the country.

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