79 Ponzi schemes under probe – SEC

The Securities and Exchange Commission (SEC) has announced it is currently investigating 79 suspected Ponzi schemes operating across Nigeria.

In a statement released on Tuesday, the commission revealed that findings from the ongoing probes would be made public upon completion.

“The commission is currently investigating 79 schemes and will make a statement on its findings at the conclusion of the investigation,” the SEC stated.

Among the entities under scrutiny is a firm identified as FF Tiffany, which the regulator says has come under widespread accusations of running a fraudulent investment operation that has allegedly duped thousands of Nigerians, both at home and abroad.

According to the SEC, early investigations suggest that the company lured investors with promises of unrealistic and extremely high returns, leading to the loss of several billions of naira.

The commission described the situation as a grave threat to public trust in the financial system and a blow to investor confidence.

To ensure accountability, the SEC said it is working in collaboration with law enforcement agencies and other regulatory institutions to track down and prosecute those behind the schemes.

“Those found culpable will be prosecuted in accordance with Investment and Securities Act and regulatory provisions,” the statement said.

Reiterating its previous warnings, the SEC cautioned Nigerians to steer clear of Ponzi and unregistered investment schemes that guarantee implausible profits, stressing that such ventures lack regulatory approval and legal safeguards.

The commission also urged members of the public to confirm the legitimacy of any investment firm or product through its official website or verified communication channels.

In a bid to prevent future occurrences, the SEC disclosed that it has embarked on a nationwide investor education campaign targeting major markets across the country.

Speaking during one of the sensitisation events, SEC Director-General Emomotimi Agama explained the rationale behind the grassroots outreach approach.

“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,” Agama was quoted as saying.

“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 reiterated the commission’s commitment to eradicating Ponzi operations and other forms of illicit investment schemes in Nigeria.

“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,” he said.

“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.”

He added that while Ponzi schemes are a global menace, Nigeria can successfully confront them through increased awareness and collective action.