The Senate has proposed a 10-year jail term for Ponzi scheme operators.
Glamtush reports that the Senate has proposed prison sentences of up to 10 years and fines of at least N20 million or both on promoters and operators of Ponzi and other illegal investment schemes.
This Investment and Securities Bill, 2024, which has passed its second reading, aims to repeal the existing Investment and Securities Act of 2007 and replace it with a more robust legal framework.
At a public hearing held on Thursday at the National Assembly, Emomotimi Agama, director-general of the Securities and Exchange Commission, said, “The proposed legislation proposes an express prohibition of Ponzi/Pyramid Schemes and other illegal investment schemes to ensure that illegal fund managers were not allowed to fleece unsuspecting Nigerians of their funds.”
Agama added that the bill clearly outlines the SEC’s roles and powers.
He emphasized that the additional responsibilities and authorities provided by the bill aim to strengthen the SEC’s enforcement capacity, enabling it to maintain its “Signature A” status.
Among its new provisions, the bill empowers the SEC to register and regulate derivatives markets, collateral management companies, and warehouses issuing warehouse receipts.
It also enhances the SEC’s role in overseeing mergers and acquisitions involving public companies and expands its authority to prevent and penalize unauthorized and illegal activities in securities and investment schemes.
Additionally, the bill addresses emerging issues within the financial technology (fintech) sector.
The proposed legislation broadens the scope of registration and regulation to encompass all financial market infrastructures and trading venues facilitating securities trading.
Senate President Godswill Akpabio, represented by Senator Binos Yaroe, underscored the bill’s significance, describing it as “a beacon of hope” for Nigeria’s economy.
He noted that the bill represents a pivotal step toward modernizing financial markets, improving transparency, and boosting investor confidence.
Akpabio said, “As we engage in discussions today, I urge everyone to approach this opportunity with an open mind and a critical perspective. The importance of your contributions cannot be overstated. We are here to listen, learn, and engage in honest dialogue,” he said.
“Your insights will aid us in crafting a bill that reflects the aspirations of our people and addresses the complex challenges within our investment landscape.”
He added, “The Senate remains fully committed to serving the Nigerian people. Our mandate is clear: to legislate for the betterment of society, to create an environment conducive to growth and innovation, and to safeguard the interests of every citizen.
“Together, we can ensure that the ISB 2024 is not merely a piece of legislation but a transformative instrument that propels Nigeria towards economic resilience and prosperity.”
