THE Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has announced that the newly signed Investment and Securities Act (ISA) 2025 gives the commission the authority to prosecute individuals promoting Ponzi schemes. These individuals could face a minimum of 10 years in prison.

Agama made this statement during an interview on Arise TV Exchange on Tuesday, April 1, while discussing the new law. President Bola Tinubu signed the ISA 2025 into law on Friday, March 29. The new Act replaces the previous ISA 2007.

The goal of the new legislation is to strengthen the legal framework governing Nigeria’s capital market, better protect investors, and introduce reforms that will promote market integrity, transparency, and sustainable growth.

Agama stated that, previously, the SEC lacked the legal power to prosecute Ponzi scheme operators, which made it difficult to bring offenders to justice. However, under the new law, those convicted of operating Ponzi schemes face a jail term of 10 years or more

“With the new law, they now face a 10-year jail term and beyond,”  he said.

He further explained that the Act stipulates a minimum fine of N20 million for anyone operating a Ponzi scheme in Nigeria.

“So, N20 million is not the entire penalty or the entire money that will be charged or sanctioned to any suspecting or any accused capital market or non-capital market operator.

“It is just part of the penalties and or the sanctions that will be meted against such persons” Agama explained.

The SEC Director-General also said that sanctions will include “disgorgement,” meaning that any profits or gains obtained from defrauding Nigerians will be recovered.

He said, “It is not about the quantum of the fraud, it is about sanctions that would deter people from even getting into it.

“The new law provides the SEC the powers to be able to do that and even more to go after these people, bring them to book and make sure that we acanrestitute the citizens as long as much as possible.”

Additionally, the new Act grants the SEC the authority to obtain and request telephone conversations and other communications needed to prosecute Ponzi scheme operators.

Agama stated that the SEC now has the necessary tools to take action against fraudulent operators and provide relief to Nigerians. He added that the new Act will help remove “bad actors” from the market and increase investor confidence in the Nigerian capital market, as the SEC’s ability to protect investors has been enhanced.