Low financial literacy continues to drive Ponzi and pyramid schemes in Nigeria. There is a growing trend of widespread financial loss from these kinds of scams. SEC Director-General Dr. Emomotimi Agama announced plans to overhaul investigative processes, enforce stricter penalties, and boost public education efforts.

The newly enacted Investments and Securities Act (ISA) 2025, a law that enhances the Commission’s enforcement power, is expected to enable it in this cause with tougher tools.

Pepetrators could get a minimum of ₦20 million fine and up to 10 years imprisonment, along with fund recovery provisions.

Agama did, however, note that the reforms under the Investment and Securities Act (ISA 2025) are not enough for the commission.

Structural issues such as poor capital mobilisation, weak oversight coordination, and limited data sharing persist despite the new act.

Collaboration between the SEC and the Central Bank of Nigeria (CBN), especially around crypto-fiat sandboxes, was one of his recommendations. This would also entail granting the SEC access to resources belonging to the CBN in stages in a global licensing strategy.

Agama stressed that building a resilient, globally competitive capital market requires joint efforts from regulators, policymakers, and the private sector, all embracing innovation and global best practices.

In addition, the SEC will improve dispute resolution via the Investments and Securities Tribunal and promote financial literacy in grassroots communities.