The Nigerian Senate has issued a stern warning against fraudulent investment schemes, with new legislation imposing a fine of no less than ₦20 million or a 10-year prison sentence—or both—on violators.
Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, delivered this message during a press briefing in Abuja on Wednesday.
He emphasized that the era of unregulated financial schemes is over, as the Securities and Exchange Commission (SEC) will now oversee cryptocurrency trading and other capital market activities more rigorously.
According to Izunaso, the newly enacted law, recently signed by President Bola Tinubu, introduces significant reforms aimed at strengthening Nigeria’s financial ecosystem.
A key focus of the legislation is investor protection, particularly against Ponzi schemes and other deceptive financial operations.
“In the past, people engaged in Ponzi schemes without facing consequences. Now, under the new law, perpetrators will face stiff penalties, including imprisonment. While we initially proposed a 20-year jail term, 10 years has now been approved,” Izunaso stated.
The senator further highlighted provisions within the law that enable state governments to secure long-term funding for infrastructure projects through the capital market.
The reforms aim to streamline the funding process and eliminate bureaucratic hurdles.
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“States can now access capital market funding without unnecessary delays. This is a game-changer for infrastructural development across the country,” he added.
In addition to addressing fraudulent investments, the law also strengthens oversight on digital financial instruments, including cryptocurrencies.
Izunaso assured Nigerians that the SEC will actively regulate digital assets to curb cybercrime and ensure transparency in online financial transactions.
With these regulatory measures now in place, the government is signaling its commitment to restoring investor confidence and fostering a more secure and structured financial landscape in Nigeria.