Nigerian SEC Enforces Tough Penalties on Ponzi Scheme Promoters

The Nigerian Securities and Exchange Commission (SEC) has announced a significant change in the fight against Ponzi schemes, thanks to the recently enacted Investment and Securities Act (ISA) 2025. This new law grants the SEC the authority to prosecute Ponzi scheme promoters with potentially up to 10 years of imprisonment and hefty N40 million fines for their fraudulent activities. This enforcement measure marks a significant shift from the SEC’s previous inability to act against these operators.