SEC, Police partner to crack down on crypto scrams

Nigeria’s financial regulators and law enforcement agencies are tightening the noose on investment scams as the Securities and Exchange Commission (SEC) and the Nigeria Police Force (NPF) agreed to a coordinated crackdown on illegal schemes, investment fraud and cryptocurrency-related crimes.

The alliance was sealed on Wednesday in Abuja during a meeting between the Director-General of the SEC, Dr. Emomotimi Agama, and the Inspector-General of Police, Kayode Egbetokun, in a move aimed at safeguarding investors’ savings and restoring confidence in the capital market.

Agama said the SEC, as the frontline regulator of Nigeria’s capital market, is mandated to protect investors, ensure fair and transparent markets and support economic growth through effective regulation, licensing and market surveillance.

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However, he warned that unregulated operators have continued to exploit loopholes, luring unsuspecting Nigerians with promises of “miraculous returns” of up to 200 per cent in 30 days.

According to him, many of these schemes hide behind the “glamorous but misunderstood language” of cryptocurrency and foreign exchange trading, targeting vulnerable citizens and leaving behind depleted pensions, lost savings and broken trust.

“This is not just a financial crime; it is a social menace that erodes public confidence in our entire financial system,” Agama said.

He noted that while the SEC can identify regulatory breaches and illegal investment activities, enforcement gaps have allowed fraudsters to evade justice.

To close this gap, the Commission proposed a structured and institutionalised collaboration with the police, anchored on joint intelligence sharing, coordinated operations, capacity building, streamlined enforcement processes and a nationwide public awareness campaign.

Central to the plan is the creation of a dedicated SEC–NPF task force combining market intelligence, forensic accounting expertise and deep knowledge of complex financial schemes with the police’s investigative and intelligence-gathering capabilities.

The team, Agama said, would serve as a rapid-response unit against emerging frauds.

The SEC boss also sought approval to formalise cooperation with the Police Cyber Security Unit through a Memorandum of Understanding to enhance monitoring and enforcement in Nigeria’s digital space.
“The fight against financial crime is a fight for the soul of our economy.

“Together, we form an impenetrable shield. Let us send a clear message to every scammer, from the dusty streets to the dark web: your time is up,” Agama said.

In his response, IGP Egbetokun assured the SEC of the police force’s readiness to deepen collaboration and strengthen enforcement efforts across the capital market. He described the SEC’s role as critical to Nigeria’s economic recovery and growth, noting that effective enforcement would deliver far-reaching benefits to the economy.

“If the police unit attached to the SEC is strengthened, it will make a significant impact on your enforcement drive,” Egbetokun said, adding that stronger supervision and government support would enhance market integrity.

The police chief also congratulated the Commission on the recent milestone of crossing the N100 trillion market capitalisation mark, describing it as a major achievement that would support economic development.

He formally approved collaboration with the NPF Cyber Security Centre and pledged full support for joint operations.

The renewed partnership comes amid rising concerns over the proliferation of Ponzi schemes, unregistered digital asset platforms and online investment frauds, as regulators seek to protect investors and sustain confidence in Nigeria’s fast-growing capital market.