ENUGU, Nigeria (VOICE OF NAIJA)- Operators of Ponzi schemes and other fraudulent investment entities now face severe penalties, including a minimum fine of N20 million and up to 10 years in prison under Nigeria’s new Securities and Exchange Commission (SEC) law.
The Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, issued this warning on Wednesday during a press briefing in Abuja.
Izunaso emphasized that the days of unchecked fraudulent investment schemes and market manipulation were over, as the SEC would now have greater regulatory oversight, particularly in cryptocurrency trading.
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“Before now, people engaged in Ponzi schemes without consequences, but the new law is designed to protect investors’ money.
“If caught, apart from paying a fine, you will go to jail. Initially, we proposed a 20-year sentence, but 10 years has been approved,” Izunaso stated.
According to Channels TV, the senator explained that the recently signed law, approved by President Bola Tinubu, introduces strict regulatory measures to strengthen Nigeria’s financial system, especially in the capital markets and state government funding sectors.
Beyond cracking down on fraudulent investment schemes, the new legislation also provides subnational governments with easier access to long-term financing through the capital market.
Izunaso encouraged state governments to take advantage of the reforms to fund infrastructure projects more efficiently.
He said, “Every state can now approach the capital market for funding without unnecessary bottlenecks. This will drive infrastructural development across the country.”
Addressing concerns over digital assets and cybercrime, Izunaso reassured Nigerians that the revised SEC law would tackle the risks associated with cryptocurrency trading and other digital financial instruments.