Nigeria;s Securities and Exchange Commission (SEC) has launched an investigation into 79 suspected ponzi schemes operating in Nigeria, with a goal to protect citizens from fake investments that promise unrealistic returns.
The schemes include FF Tiffany, which is said to have swindled billions of naira from unsuspecting Nigerians locally and in the diaspora.
The SEC action comes amid rising concerns that the schemes erode investor confidence in the financial system, with multiple families left in debt and discouraged from participating in legitimate opportunities.
The commission suspects will be charged under the Investment and Securities Act to restore investor confidence while calling on the public to avoid unapproved and unregistered investment opportunities.
Besides the investigation, Nigeria has strengthened its laws to protect citizens from falling victims to scams.
Bola Ahmed Tinubu, the president, recently signed into law the new Investment and Securities Act (ISA) 2025, introducing severe punishment for those involved in ponzi schemes, including influencers and accomplices openly marketing the scams.
Offenders are now subject to a fine of not more than ₦20 million and 10 years imprisonment. The Act aims to deter potential fraudsters while serving justice to victims.
Awareness is key
Acknowledging that enforcement alone is not enough, the SEC has created a national investor education campaign as a preventative solution to the continuing threat of ponzi schemes.
It has also taken its activities to rural markets and informal economies by directly engaging with the public in large markets, places of worship, and even health centers.
By providing in-person education about the dangers of ponzi schemes and the importance of exploring investment opportunities, the SEC empowers individuals to make informed decisions while protecting themselves and their communities from financial predators.
These initiatives are supplemented by websites playing a vital role in countering ponzi schemes through real-time verification services and whistleblowing options.
The SEC official website now allows Nigerians to check, in real time, the status of investment firms and products, reducing the likelihood of being deceived by scams.
Fintech and cybersecurity firms in Nigeria also cooperate with regulators in detecting suspicious investment trends and closing digital payment channels linked to scams, thereby limiting the scope of ponzi operators.
These digital solutions not only make it harder for fraudsters to operate but also foster a culture of transparency and accountability within Nigeria’s investment landscape.
Nigeria’s wide approach through the employment of legal frameworks, community education, and technology-enabled verification offers a template replicable elsewhere.
The commitment of the SEC to broaden its market reach, grounded in a legal framework and technical developments, underscores the reality that the war against financial fraud is a joint fight.
The more Nigerians become educated on the warning signs and how to check out legitimate investments, the closer the country gets to a system of investments where trust, security, and transparency are maintained so that economic growth does not happen at the cost of citizens’ financial safety.
Nigeria's Securities and Exchange Commission (SEC) is investigating 79 suspected ponzi schemes to protect citizens from fraudulent investments that promise unrealistic returns.
These schemes, including FF Tiffany, have already defrauded billions of naira from locals and the diaspora, harming investor confidence and causing debt among families.
Under the Investment and Securities Act 2025, endorsed by President Bola Ahmed Tinubu, severe penalties such as fines of up to ₦20 million and 10 years imprisonment are now in place for offenders, including marketers and influencers of these scams.
To combat the threat of ponzi schemes, the SEC has initiated a national investor education campaign focused on prevention.
This includes outreach in rural areas and informal economies, providing education on scam dangers and promoting informed investment decisions.
The SEC’s website offers real-time verification services, allowing investors to check the status of investment firms. Support from fintech and cybersecurity firms helps detect suspicious trends and close digital payment channels linked to scams.
These efforts indicate a comprehensive strategy combining legal frameworks, community education, and technology. By raising awareness and providing tools for verification,
Nigeria aims to create a transparent, secure investment environment, ensuring economic growth without compromising citizens' financial safety.
