Nigeria’s Securities and Exchange Commission (SEC) has finally declared war on Ponzi schemes, with a new law empowering it to jail fraudsters for up to 10 years and slam them with a N40 million fine—a move that could have saved millions of Nigerians from infamous scams like MMM, MBA Forex, and Loom Money Nigeria if enacted earlier.

SEC Director-General Emomotimi Agama announced the crackdown during an interview on Arise TV, revealing that the newly signed Investment and Securities Act (ISA) 2025 now gives the Commission the legal teeth to pursue and punish Ponzi operators, something it previously struggled with.

"With the new law, they now face a 10-year jail term and beyond," Agama declared, adding that the N40 million penalty is just the starting point.

"We will ensure every illegal profit is disgorged—fraudsters will not only be jailed but also forced to return their victims' money."

A Lesson from Nigeria’s Ponzi Graveyard

The timing couldn’t be more critical. Nigeria has long been a hunting ground for Ponzi schemes, with infamous collapses like:

- MMM Nigeria (2016): The Russian-originated scam collapsed, wiping out billions from hopeful investors.    

- Loom Money Nigeria (2017): A pyramid scheme that lured Nigerians with a "pay-to-join" model before crashing.

- MBA Forex (2020): Promised unrealistic forex returns before vanishing with depositors’ funds.

Many of these fraudsters operated with impunity, exploiting weak regulations and desperate investors. Now, the SEC says the new law will ensure that future Ponzi kingpins face harsh penalties and asset seizures.