In a sweeping effort to safeguard Nigerians from fraudulent investment schemes, the Securities and Exchange Commission (SEC) is pushing for stronger legal measures to curb Ponzi and pyramid scams. Under the proposed 2024 Investments and Securities Bill (ISB), promoters and operators of illegal financial schemes face hefty fines and long jail sentences.
The ISB seeks to impose penalties on anyone found guilty of operating prohibited schemes, with potential fines of up to N20 million or prison terms of up to 10 years—or both. This move comes as part of a broader effort to strengthen the nation’s financial markets and protect investors from exploitative practices.
Senator Godswill Akpabio, speaking at a public hearing in Abuja, emphasized the significance of the bill, describing it as more than just a legislative change. By repealing the Investment and Securities Act of 2007, the new bill aims to modernize Nigeria’s capital markets, increase transparency, and boost investor confidence.
Akpabio, represented by Senator Binos Yaroe, urged stakeholders to actively engage in shaping a legislative framework that would promote fair investment opportunities while addressing the challenges posed by illegal financial activities. “The ISB 2024 is not just about laws; it’s about creating an environment where markets thrive and contribute to national growth,” he said.
Senator Osita Izunaso, Chairman of the Senate Committee on the Capital Market, stressed that a well-regulated market is vital for economic development. He pointed to the growing influence of fintech and digital assets in the sector, noting that the old law had become outdated. The ISB, he said, is a response to the shifting landscape, aiming to place Nigeria’s capital market on the global stage while ensuring long-term sustainability.
Dr. Emomotimi Agama, SEC Director-General, echoed these sentiments, highlighting the bill’s provisions to enhance the protection of investors. One key addition is the Investor Protection Fund, which would compensate investors who lose money due to the cancellation or revocation of a registered firm’s dealings. The bill also introduces new regulations for commodity exchanges and warehouse receipts, strengthening the entire financial ecosystem.
With the ISB 2024, Nigeria is taking bold steps toward securing a more resilient and competitive financial market—one that can effectively support the country’s economic transformation and growth.
