Securities and Exchange Commission (SEC) has launched a sweeping investigation into 79 suspected Ponzi schemes operating across Nigeria, issuing a stern warning that individuals or entities found culpable will face full prosecution under the newly amended Investment and Securities Act (ISA) 2025.
Among the schemes under investigation is FF Tiffany, which the SEC is probing separately following widespread allegations of fraudulent investment practices. According to the Commission, the scheme is believed to have defrauded thousands of Nigerians at home and abroad, promising investors unusually high and unrealistic returns.
“Preliminary findings suggest the scheme has caused losses running into several billions of naira,” the Commission said in a statement released Tuesday in Abuja. It described the activities as a serious threat to investor confidence and the stability of the financial system.
The SEC said it is collaborating with law enforcement and other relevant agencies to trace the promoters of the schemes. Those found guilty will face stiff penalties, including up to 10 years imprisonment and fines of up to N20 million, in accordance with the new ISA signed into law by President Bola Ahmed Tinubu.
In response to the proliferation of unregistered investment platforms, the Commission reiterated its public advisory to steer clear of ventures that promise guaranteed or exaggerated returns. It emphasized that such schemes are not licensed by the SEC and therefore offer no investor protection under Nigerian law.
To safeguard potential investors, the SEC urged Nigerians to verify the registration status of any investment company or product via its website or by contacting its offices directly.
“The SEC remains committed to protecting investors, ensuring fair practices, and preserving confidence in Nigeria’s capital market,” the statement read.
As part of its efforts to combat the spread of fraudulent investment schemes, the Commission has recently embarked on a nationwide sensitization campaign. Led by the SEC’s Director General, Dr. Emomotimi Agama, the campaign targeted markets, traders, and the general public with direct outreach and education on the dangers of unregulated investments.
Speaking during one of the campaigns, Agama stressed the importance of grassroots education. “It is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures not registered or regulated by the SEC,” he said.
“We’re telling them if it’s too good to be true, then it’s not good. It’s certainly not true,” he added.
Agama revealed that many participants in the campaign welcomed the initiative and requested the Commission’s continued presence in their communities. He encouraged them to pass the information on to their families and peers, noting that increased awareness at the grassroots level can prevent millions from falling victim.
Explaining the personal and societal risks of Ponzi schemes, Agama said: “The danger is real. You could lose all your money. You could fall into ill health from the stress. That could destroy your family, your business even the nation.”
He emphasized the SEC’s resolve to fight the menace: “We will not stop here. We will go to every market, every church, mosque, hospital even the navy. Everyone must hear this message.”
Calling for collective responsibility, he concluded, “The SEC of today is reaching out like never before. But we cannot do it alone. Help us spread this message. Together, we can end this scourge and build a safer financial future.”
WATCH TOP VIDEOS FROM NIGERIAN TRIBUNE TV
- Let’s Talk About SELF-AWARENESS
- Is Your Confidence Mistaken for Pride? Let’s talk about it
- Is Etiquette About Perfection…Or Just Not Being Rude?
- Top Psychologist Reveal 3 Signs You’re Struggling With Imposter Syndrome
- Do You Pick Up Work-Related Calls at Midnight or Never? Let’s Talk About Boundaries