The Securities and Exchange Commission (SEC) has intensified its efforts to combat Ponzi schemes in Nigeria, pledging to take strong action against illegal fund operators while also educating the public to prevent further collapses of fraudulent investment schemes.
During an awareness campaign at the Dei-Dei Building Materials Market in Abuja, the SEC highlighted its commitment to disseminating information about illegal investment schemes before taking legal action against offenders.
At the event, Ms. Frana Chukwuogor, the SEC’s Executive Commissioner for Legal and Enforcement, remarked, “We are here to engage with the community, recognizing that the issue of Ponzi schemes is widespread and is deceiving many, particularly traders in the market.”
Chukwuogor stated that the campaign is a proactive measure aimed at addressing the rise of fraudulent investment schemes in Nigeria. This initiative aligns with the Commission’s broader strategy to inform the public about the dangers of Ponzi schemes and unregistered investment platforms before taking regulatory action.
She noted that many Nigerians, particularly those in grassroots communities, fall prey to Ponzi schemes due to a lack of information or the allure of unrealistic, quick returns. She emphasized that numerous schemes operate without registration or regulation by the SEC, rendering them both dangerous and illegal.
“We have witnessed individuals lose their life savings, businesses, and peace of mind. That’s why we are bringing this message to markets, motor parks, and online platforms—anywhere Nigerians are making financial decisions. Education is our first line of defense against these threats,” she added.
Mr. Abdusalam Sa’ad Khalid, the Head of the Enforcement Department at the Securities and Exchange Commission, also issued a warning.
