The Nigerian government has announced harsh penalties for operators of prohibited investment schemes, including Ponzi schemes, under the newly signed Investments and Securities Act (ISA) 2025. The penalties include a minimum fine of ₦20 million, a 10-year prison term, or both.
This new law, which was recently assented to by President Bola Tinubu, aims to strengthen Nigeria’s capital market regulations and enhance investor protection.
The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, highlighted that the Act grants the SEC the legal authority to prosecute Ponzi scheme operators, addressing a gap in previous legislation that hindered the prosecution of offenders.
Key highlights of the ISA 2025
The penalty of ₦20 million is only part of the sanctions and does not represent the full extent of the penalties for offenders.
Profits or gains made through fraudulent schemes will be recovered to deter further criminal activity.
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The new law seeks to align Nigeria’s market operations with international best practices and ensure greater market integrity.
The ISA 2025 replaces the Investments and Securities Act No. 29 of 2007, marking a significant reform in the country’s financial sector.
Dr. Agama emphasized that the SEC’s role in protecting investors is central to the law’s objectives, and the provisions under the ISA 2025 empower the SEC to act more decisively against fraudulent practices in Nigeria’s financial markets.
