Onome Amuge
Nigeria is deepening domestic investment and rebuilding confidence in its capital market by pushing regulators to confront the resurgence of Ponzi schemes that erode household savings and weaken trust in formal finance. Responding to the growing threat, the Securities and Exchange Commission (SEC) has intensified inter-agency collaboration to trace, disrupt, and prosecute illegal investment promoters under the Investments and Securities Act (ISA) 2025.
Speaking at the SEC Journalists’ Academy 2025 in Lagos, themed “The ISA 2025 and the Future of Nigeria’s Capital Market: Innovation, Protection, and Growth,” John Achile,the commission’s divisional head, legal and enforcement, said the regulator is moving to tighten its enforcement footprint amid a rise in unregistered schemes disguised as agricultural ventures, cryptocurrency products, commodity trades, and other high-yield digital offerings.
Achile noted that Ponzi schemes distort savings behaviour, reduce banking-sector deposits, and divert capital away from productive investment channels, with ripple effects on economic growth and consumer confidence.
“Every time a Ponzi scheme collapses, trust in the financial system is weakened. It creates socio-economic problems, reduces savings mobilisation, and undermines confidence in regulators and government institutions,” he said.
Under the ISA 2025, the commission plans to intensify coordinated investigations with the Nigeria Police Force, the EFCC, and the Office of the Attorney General of the Federation to pursue criminal prosecution. Achile disclosed that SEC will continue freezing bank accounts, sealing offices, and blocking digital platforms linked to fraudulent operators.
Achile emphasised that the typical red flags remain unchanged, guaranteed high returns, unverifiable promoters, inconsistent documentation, and lack of registration with appropriate regulators. He urged Nigerians to prioritise due diligence and consult regulatory agencies before committing funds.
As Nigeria positions the capital market as a driver of long-term economic growth under the ISA 2025 framework, SEC’s enforcement push signals an acknowledgment that investor protection is now central to sustaining market innovation and restoring public confidence. The Journalists’ Academy, themed “The ISA 2025 and the Future of Nigeria’s Capital Market: Innovation, Protection, and Growth,” reflects the regulator’s attempt to balance market development with tighter oversight in an increasingly complex investment environment.
