SEC investigates 79 suspected ponzi schemes, warns of tough legal consequences

The Securities and Exchange Commission (SEC) has commenced investigations into 79 suspected Ponzi schemes across Nigeria, warning that those found culpable will face stringent legal action under the Investment and Securities Act (ISA).

In a statement issued on Tuesday in Abuja, the Commission disclosed that among those under scrutiny is a firm known as FF Tiffany, which is the subject of a separate, full-scale probe. The company has been widely accused of orchestrating a fraudulent investment platform that allegedly defrauded thousands of Nigerians, including members of the diaspora.

“Preliminary findings suggest the scheme promised extraordinarily high and unrealistic returns, leading to losses amounting to several billions of naira,” the statement said.

Describing such schemes as a serious threat to investor trust and the broader financial ecosystem, the SEC reassured the public that it is working in partnership with law enforcement and other relevant agencies to trace those responsible. Individuals and organisations found guilty, the Commission said, will be prosecuted to the full extent of the law.

As part of its response to the growing number of unregulated investment outfits, the Commission once again cautioned the public to steer clear of schemes offering guaranteed or exaggerated returns, stating that such ventures are not registered and therefore provide no investor protection under Nigerian law.

The SEC encouraged members of the public to verify the regulatory status of any investment firm or product by consulting the Commission’s website or visiting its offices directly.

“The SEC remains committed to safeguarding investors, promoting fair market practices, and reinforcing confidence in Nigeria’s capital market,” the Commission said.

To combat the rise in fraudulent investment schemes, the SEC has intensified nationwide awareness campaigns, particularly targeting local markets. These outreach programmes, led by Director General Dr Emomotimi Agama, aim to educate the public on the dangers of investing in unregistered platforms.

Speaking to journalists during one of these sensitisation exercises, Agama stated, “It is vital that Nigerians understand the risks of entrusting their hard-earned money to ventures that are neither registered nor regulated by the SEC. We’ve taken this message beyond formal channels—into the streets and markets—to reach people directly.”

He continued, “If it sounds too good to be true, then it is not good, and it certainly isn’t true.”

Agama added that many traders and residents engaged during the campaigns requested the Commission to return regularly and pledged to spread the message within their communities.

According to him, raising awareness at the grassroots level is essential to shielding millions from the dangers of Ponzi schemes.

“The risk is real,” Agama warned. “You could lose everything. The stress can affect your health, disrupt your family, ruin your business, and shake the foundations of society.”

He pointed out that under the newly signed Investment and Securities Act 2025, penalties for promoting or participating in Ponzi schemes have become significantly more severe. Offenders—including social media influencers, bloggers, and other enablers—now face fines of up to N20 million and prison terms of up to 10 years.

“We will not stop here,” Agama declared. “We will take this campaign to every market, every church, mosque, hospital, and even the navy. Every Nigerian must hear this message.”

He concluded, “It’s never too late. When you wake up, that is your morning. Now that you’re informed, you can protect yourself and others. Ponzi schemes are a global menace, but here in Nigeria, we can defeat them—together.”

The SEC called on all Nigerians to play their part in spreading the word and protecting the financial wellbeing of their communities.