The Securities and Exchange Commission of Nigeria (SEC), in a resolute effort to revitalize Nigeria’s financial landscape, has pledged to eradicate Ponzi and pyramid schemes, while enhancing legitimate investment opportunities.
This disclosure was made by the SEC Director-General, Dr. Emomotimi Agama, who emphasized the commission’s unwavering focus on investor protection, market integrity, and economic growth.
Part of the commission statement reads,
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“The Securities and Exchange Commission has emphasized that protecting investors remains a cornerstone of its mission assuring that the commission will intensify efforts to stamp out Ponzi and pyramid schemes while paving the way for legitimate investment opportunities to thrive in 2025.”
Dr. Agama highlighted that investor protection remains the cornerstone of the SEC’s mission, stating that the commission will intensify efforts to eliminate fraudulent schemes. Simultaneously, the SEC is dedicated to fostering a conducive environment for legitimate investments to thrive.
It is understood that Ponzi Schemes have cost Nigerians over US$1 billion in the past decade. The most infamous scheme across Africa, MMM, attracted over three million Nigerian subscribers, who collectively lost about US$50 million when it crashed in December 2016. This accounts for nearly 50% of the total funds lost to Ponzi schemes in Nigeria in 10 years.
These schemes thrive due to economic hardship, the quest for easy cash, and financial illiteracy. Weak regulatory laws and poor enforcement mechanisms further expose Nigerians to various forms of fraudulent schemes that erode local and foreign investor confidence.
“Transparency is at the heart of investor confidence and capital markets,” Agama remarked, underscoring plans to revamp investigative processes and introduce measures to ensure greater visibility and trust in securities transactions.
The SEC is also set to tackle insider trading and market irregularities by strengthening its regulatory framework. Agama noted that enforcement is critical for effective regulation, with plans to restructure investigative processes for greater efficiency and accountability. The commission also aims to enhance dispute resolution through the Investments and Securities Tribunal, ensuring timely and fair outcomes to bolster market confidence.
A significant aspect of the SEC’s 2025 agenda is the development of Nigeria’s commodities market. Dr. Agama underscored the importance of leveraging Nigeria’s agrarian economy to create a vibrant commodities ecosystem. “The commodities market is indeed a major area of interest for us at the SEC. This year, we will focus on reinforcing the legal and regulatory structures that support growth, building a solid foundation for a thriving commodities ecosystem,” he said.
On the cryptocurrency front, the SEC has expressed openness to working with local crypto companies despite a clampdown on major international exchanges like Binance and OKX. While maintaining strict regulatory standards, the commission has assured fairness and transparency in its application review process. Agama stressed that registration is not merely an onboarding process but involves continuous monitoring, education, and surveillance.
With a robust agenda aimed at eliminating fraudulent schemes, bolstering investor confidence, and advancing key market sectors, the SEC is poised to make significant strides in Nigeria’s financial ecosystem in the coming year.