The Securities and Exchange Commission (SEC) has issued a stern warning that individuals promoting or operating Ponzi schemes in Nigeria now face a minimum penalty of N20 million, a 10-year prison sentence, or both upon conviction, as mandated by the newly enacted Investments and Securities Act 2025. SEC Director-General, Dr. Emomotimi Agama, made this known in Abuja, emphasizing that the new law aims to strengthen Nigeria’s capital market framework, enhance investor protection, and introduce reforms that foster market integrity, transparency, and sustainable growth. He noted that in the past, the SEC lacked the legal authority to prosecute Ponzi scheme operators, making it difficult to hold offenders accountable. However, the new legislation now imposes a mandatory 10-year prison term or more for those found guilty. Additionally, the Act sets a minimum fine of N10 million for anyone caught operating a Ponzi scheme in the country. “So, N10 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 adding “It is not about the quantum of the fraud, it is about sanctions that would deter people from even getting into it”. Also, Agama said the new ISA has also provided the SEC with the power to be able to obtain and request telephone conversations and all other conversations that are required to Prosecute Ponzi operators. “We recognize that a lot of Nigerians have fallen prey to these sponsor schemes and the reason why that is the case is because there were no sanctions. You know enough to deter them from doing this so what this Act has done is to introduce measures for Ponzi scheme operators and intending Ponzi scheme operators not to be able to do this again against the wish and will of Nigerians.