The Nigerian Senate has introduced strict penalties for Ponzi scheme operators, including a 10-year jail term and a ₦20 million fine.
Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market, made this announcement on Wednesday, warning that the era of scam investment schemes is over.
According to Izunaso, the new Securities and Exchange Commission (SEC) law, recently signed by President Bola Tinubu, aims to protect investors and restore trust in Nigeria’s financial markets.
“Before now, people engaged in Ponzi schemes without consequences, but this new law ensures that anyone caught defrauding investors will face serious punishment,” he stated.
The law also introduces strict regulations for cryptocurrency trading and allows state governments to access long-term funding through the capital market without excessive bureaucracy.
“Every state can now approach the capital market for funding without unnecessary bottlenecks. This will drive infrastructural development across the country,” Izunaso added.
The legislation also addresses cybercrime concerns, ensuring that digital assets and financial instruments operate within a transparent and secure regulatory framework.
