Securities and Exchange Commission says it is currently investigating 79 suspected ponzi schemes across the country.
SEC in a statement on Tuesday, said the outcome of the investigations would be known at the end of the operations.
“The commission is currently investigating 79 schemes and will make a statement on its findings at the conclusion of their investigation” SEC said.
The market regulator also announced plans to probe the operations of a firm, FF Tiffany.
SEC said the firm had been widely accused of operating a fraudulent investment scheme that has defrauded thousands of Nigerians both in the country and in the Diaspora.
According to the commission, preliminary findings indicate that the scheme promised investors high and unrealistic returns, resulting in the loss of several billions of naira.
SEC described the development as a serious threat to investor confidence and the integrity of the financial system.
It also disclosed that it is collaborating with law enforcement agencies and other regulatory agencies to bring the perpetrators to justice.
“Those found culpable will be prosecuted in accordance with Investment and Securities Act and regulatory provisions,” SEC said.
Restating its earlier warnings, SEC urged Nigerians to desist from engaging in ponzi and unregistered investment schemes that promise guaranteed or exaggerated returns.
The commission said such schemes are not registered and do not offer legal investor protection.
It also encouraged members of the public to verify the registration status of any investment company or product by visiting SEC’s website or contacting its official channels.
To check future occurrences, SEC said it had conducted sensitisation campaigns across various markets in the country.
SEC Director-General, Emomotimi Agama, while addressing newsmen after one of the outreach events, said the commission’s decision to go directly into marketplaces was driven by the need to take information to people who might otherwise remain uninformed about the dangers confronting them.
According to the SEC DG, “We decided to do this sensitization to the market because we discovered that it is difficult for people to get the information that will protect them.
“Sitting in our offices and requiring them to go to our websites and getting to us through the telephone may not be the best way; we needed to come out to let them know the dangers of a ponzi scheme.”
Agama reaffirmed SEC’s determination to eliminate ponzi schemes and all other forms of illegal investment operations in Nigeria.
He said, “President Bola Ahmed Tinubu has signed into law the new ISA 2025. Now, anyone involved in Ponzi schemes—whether influencers, bloggers, accomplices, or anyone else—faces a 20 million naira fine and up to 10 years in jail.
“We will not stop here. We will go to every market we can reach—every nook and cranny of this country. We will visit churches, mosques, hospitals, even the navy. We want everyone to hear this message.
“It is never too late. When you wake up, that is your morning. Now that you are educated, you can protect yourselves and others.”
The SEC boss noted that while ponzi schemes are a worldwide issue, they can be tackled locally through collective effort.
