Nigeria’s SEC set to stamp out Ponzi and pyramid schemes in 2025

In its efforts to revamp Nigeria’s commodities market, the Securities and Exchange Commission (SEC) has vowed to eradicate Ponzi and Pyramid schemes in 2025. In line with its New Year agenda, the commission stressed its commitment to protecting investors and enhancing legitimate investment opportunities. 

The pronouncement was made in a New Year statement issued on Sunday by the SEC Director-General, Dr Emomotimi Agama. He highlighted the commission’s goal of making investor protection its cornerstone and also noted that the commission’s 2025 agenda will prioritize market integrity, investor confidence, and economic growth.

“The Securities and Exchange Commission has emphasized that protecting investors remains a cornerstone of its mission assuring that the commission will intensify efforts to stamp out Ponzi and pyramid schemes while paving the way for legitimate investment opportunities to thrive in 2025,” the statement reads.

While expressing his confidence about reaping the opportunities ahead, Agama said that the commission is committed to regulating and developing the capital market as it looks to integrate it into an extensive economy. 

“Enforcement is the backbone of effective regulation. We are revamping our investigative processes to enhance efficiency and hold bad actors accountable more decisively. Transparency is at the heart of investor confidence and capital markets. We will introduce measures to ensure greater visibility and trust in securities transactions,” he said.

Agama added that insider trading undermines activities and dampens market fairness but revising the commission’s regulatory framework will strengthen detect, prevent, and bring about accountability mechanisms. He stressed that the commission seeks to revise its regulatory framework to build trust in securities transactions.

On enforcement, the Chief, while noting the necessity of implementation as the backbone of effective regulation, said that the commission is set to restructure its investigative processes to improve efficiency and decisively hold bad actors accountable.

In addition, Agama expressed that the financial regulator would employ the service of the Investments and Securities Tribunal to ensure timely and fair resolution of market disputes which will later on improve overall market efficiency and boost investors’ confidence.

SEC to strengthen Nigeria’s commodities market

For the new year, aside from hunting down Ponzi schemes and improving investor’s security, another main goal of the commission is the development of Nigeria’s commodities market.

Agama highlighted that the SEC will strengthen the legal and regulatory framework to create a vibrant commodities ecosystem which includes leveraging on the country’s agrarian economy to unlock the market’s full potential.

“The commodities market is indeed a major area of interest for us at the SEC. Nigeria is purely an agrarian nation and as such, taking that comparative advantage to the next level is something that the SEC is proud to be a part of. It is a vital part of the Nigerian economy. This year, we will focus on reinforcing the legal and regulatory structures that support growth so we can create a solid foundation for the vibrant commodities ecosystem. Be it a soft commodity or a hard commodity,” Agama noted. 

The commission’s boss emphasized that the commission aims to maximally utilize a plethora of commodities all over Nigeria for economic development. He added that SEC as a partner in development will make sure to make a difference in the commodity sector. 

Agama called on stakeholders to collaborate with the Commission to achieve its vision of wealth creation, enhanced confidence, and economic development.

While describing the commodity market as a significant part of Nigeria’s economy and a key area of focus for the commission, he said that the agency is committed to building a more inclusive capital market in 2025.

On another end, the Nigerian Securities and Exchange Commission has shown signs of willingness to collaborate with local crypto companies, despite the protracted clampdown on major crypto exchanges like Binance and OKX in recent months.

As part of this, the agency issued a statement last month that some crypto companies that have made regulatory applications may not get its approval due to their inability to meet the requirements. The commission pointed out that despite the fact that all applications submitted are under review, it will be impossible to say all will be approved.

While reiterating the transparency of the crypto regulation, the commission noted that it provides fairness for all applicants in its screening process. 

Agama added that the registration process was very strict as it is the bedrock of the regulatory impetus. “Registration goes beyond onboarding and registering, it requires monitoring, education, and surveillance, and all of these are continuous,” he said.

Agama emphasized that the commission will try to move faster in delivery and announcements concerning regulatory approval. With the experiences gained from last year’s process and the new law in the process of obtaining Presidential assent, he said that the commission will do better this year.

In August, the SEC announced that seven crypto entities had been granted an ‘Approval-in-Principle” which include Quidax Technologies Company and Busha Digital Limited. The regulator which oversees registration and operations in the capital markets, granted two Digital Assets Exchanges “Approval-in-Principle” to commence operation under the Accelerated Regulatory Incubation Program (ARIP). 

Read More: SEC says some crypto companies that fell short of requirements may not get final approval.