Abuja, Nigeria – April 4, 2025
In a significant move to curb financial fraud, the Nigerian Senate has passed a new bill imposing stricter penalties on individuals involved in Ponzi schemes and other forms of investment fraud. Under the newly approved legislation, promoters of Ponzi schemes will now face up to 10 years imprisonment or a ₦20 million fine, or both.
The bill, titled “Investment and Securities Act (Amendment) Bill, 2025,” was passed during plenary on Thursday following extensive deliberation on the growing threat of fraudulent investment platforms in the country.
Senate President Godswill Akpabio, while commenting on the bill, emphasized that the new measures were necessary to protect millions of Nigerians from falling victim to deceitful investment operators. “These fraudulent schemes have wrecked families, stolen livelihoods, and created widespread distrust in genuine investment opportunities,” he said.
The legislation empowers the Securities and Exchange Commission (SEC) to clamp down on unregistered investment schemes and collaborate with law enforcement agencies to prosecute offenders.
According to the Senate Committee on Capital Market, the bill also includes provisions to:
- Mandate compulsory registration of all investment platforms with the SEC.
- Strengthen the SEC’s authority to investigate and freeze accounts linked to suspicious investment activities.
- Protect whistleblowers and victims of investment scams.
Ponzi schemes, which promise high returns with little or no risk, have been a persistent issue in Nigeria, especially with the rise of digital platforms. From the infamous MMM Nigeria to more recent cases involving crypto-based fraud, thousands of Nigerians have lost billions of naira.
With the passage of this bill, the Senate hopes to send a strong message to fraudsters and restore confidence in Nigeria’s investment ecosystem.
The bill now awaits concurrence by the House of Representatives and presidential assent to become law.
