Ponzi operator in Nigeria to face 10-year jail term – SEC DG

The Director-General of the Securities & Exchange Commission (SEC) has announced that the newly enacted Investment & Securities Act (ISA 2025) grants the Commission the authority to prosecute promoters of Ponzi schemes with offenders facing a minimum of 10 years imprisonment.

Speaking on Arise TV on Tuesday, Agama explained that before this law, the SEC lacked the legal framework to take action against Ponzi scheme operators, making enforcement difficult. “With the new law, they now face a 10-year jail term & beyond,” he stated. In addition to imprisonment, anyone caught running a Ponzi scheme in Nigeria will also be subject to a N40 million penalty.

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However, he clarified that this fine is just one aspect of the sanctions. “So, N40 million is not the entire penalty or the only charge. There will also be disgorgement, meaning every profit & gain obtained through fraudulent means will be recovered,” he said

He emphasized that the new law ensures that defr@uded citizens receive restitution as much as possible