SEC declares war on ponzi schemes: warns celebrities and influencers of jail term

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The Securities and Exchange Commission (SEC) has issued a stern warning to celebrities, social media influencers, and bloggers over promoting unregistered and fraudulent investment schemes. The Commission has reminded the public that the recently signed Investments and Securities Act (ISA) 2025 prescribes stiff penalties for violations, including jail terms and heavy fines.

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According to the SEC Director General, Dr Emomotimi Agama, the ISA 2025 contains specific provisions targeting promoters of fraudulent and unregistered investment schemes. “The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment,” he said, urging them to desist immediately.

Dr Agama advised Nigerians to exercise caution when approached with investment offers, particularly those promising unrealistically high returns. “People must be careful, ask questions, and consult professionals before investing their hard-earned money,” he stated.

The SEC has enhanced its internal surveillance capacity, creating dedicated departments to monitor market activities and carry out on-site inspections. “Once we hear anything, we do something,” Dr Agama said, referring to the proactive strategy designed to prevent widespread investment frauds.

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The ISA 2025 has empowered the Commission with new legal tools to tackle fraudulent schemes. For the first time, Ponzi schemes are clearly defined under Nigerian law, with promoters now liable to face a minimum fine of ₦20 million and imprisonment of at least 10 years.

Dr Agama emphasised the Commission’s determination to shut down fraudulent operations and bring their promoters to justice. “The SEC is capable, has the capacity, has the know-how, and of course will be able to deal with anyone caught in this mess,” he declared.

The SEC is also focusing on investor education, launching educational campaigns across multiple platforms. “We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” Dr Agama noted.

The Commission is urging Nigerians to verify all investment opportunities directly with the SEC before committing their funds. Dr. Agama warned, “Once it is too good to be true, it certainly is not true.” He reiterated that the Commission is working to democratise wealth creation by providing a transparent and secure capital market environment for all Nigerians.

“The capital market helps you to democratise wealth for everybody,” Dr Agama said, adding that ISA 2025 marks a crucial milestone in protecting investors and ensuring the resilience of Nigeria’s financial market.

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