Bill to save Nigerians from MMM, other ponzi schemes scales second reading

The bill that prescribes 10years imprisonment for Ponzi schemers has passed the second reading in the House of Representatives.

The bill seeks to amend the Nigerian capital market, the investments and securities act 2007 by prohibiting Ponzi/Pyramid schemes as well as other illegal investment schemes and prescribes a jail term of not less than 10 years for promoters of such schemes.

The sponsor of the bill, Babangida Ibrahim, while speaking on the bill, said that “current trends in capital market regulation have made it imperative to make major improvements to the Act to align our market with international standards.”

In addition, the bill will empower the Security and Exchange Commission to shut down such prohibited investment schemes.

It would be recalled that the Ponzi scheme, popularly known as MMM wiped off investments of Nigerians in 2016, and Nigerians have continued to be victims of similar Ponzi schemes.