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10-Year Jail For Ponzi Operators In Nigeria
By Benjamin Abioye
Senator Osita Izunaso has warned that promoters and operators of illegal Ponzi schemes face penalties of ₦20 million fines or 10 years in prison, or both, under the new SEC law.
The Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, has issued a stern warning to promoters and operators of illegal Ponzi schemes.
He stated that under the new Securities and Exchange Commission (SEC) law, such individuals will face severe penalties, including fines of no less than ₦20 million or imprisonment for up to 10 years, or both.
In a press briefing held on Wednesday, Senator Izunaso emphasized that fraudulent investment schemes and market manipulation would no longer be tolerated in Nigeria. He explained, “The new law is designed to protect investors’ money. If caught, apart from paying a fine, you will go to jail. Initially, we proposed a 20-year sentence, but 10 years has been approved.”
The Senator pointed out that the new law, which President Tinubu has already signed into effect, is designed to strengthen Nigeria’s financial system. It particularly targets the cryptocurrency sector and aims to improve state government access to funding through the capital market.
Izunaso noted that, in the past, individuals involved in Ponzi schemes operated without facing any consequences. He said, “Before now, people engaged in Ponzi schemes without consequences, but the new law is designed to protect investors’ money.” Offenders will now be subject to both fines and jail terms. While the Senate initially proposed a 20-year sentence for offenders, the final law stipulates a 10-year term.
The new law also allows state governments to raise long-term funding more easily through the capital market. Senator Izunaso encouraged states to approach the SEC for infrastructure financing, highlighting recent regulatory reforms that make the process more flexible and efficient. He said, “Every state can now approach the capital market for funding without unnecessary bottlenecks. This will drive infrastructural development across the country.”
Addressing concerns regarding digital assets and cybercrime, Izunaso reassured Nigerians that the revised securities law would comprehensively address the challenges associated with cryptocurrency and other digital financial instruments, ensuring a secure environment for digital investments. He stated, “The new securities law will comprehensively address issues related to cryptocurrency and other digital financial instruments.”
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