The Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama, has clarified that registration with the Corporate Affairs Commission and a SCUML certificate from the EFCC do not authorize any entity to operate an investment scheme in Nigeria.
He emphasized that only schemes registered with the SEC are legally permitted to operate, cautioning Nigerians to be wary of companies that claim legitimacy solely based on CAC and SCUML documentation. Speaking in Abuja, Agama expressed concern over the rising cases of Ponzi schemes by both Nigerian and foreign entities, stressing that the government will no longer tolerate the loss of billions of naira through fraudulent investments. He urged the public to avoid putting their money into unregistered ventures.
He highlighted that the newly signed Investments and Securities Act prescribes a N20 million fine and up to 10 years imprisonment for individuals running Ponzi schemes, providing the Commission with stronger enforcement powers to shut down illegal operations.
Agama also warned that seminars and training programs used to lure unsuspecting investors are illegal when tied to unregistered investment schemes. He encouraged Nigerians to verify the legitimacy of any investment through the SEC before committing funds.
Assistant Director of the SEC Enforcement Department, Tope Onwionoko, added that the Commission is committed to promoting financial literacy, particularly in curbing the spread of Ponzi schemes across the country.
Source : https://www.vanguardngr.com/
