E-Financial
SEC Seeks N20m Fine, 10-Year Jail Term for Ponzi Scheme Operators
Securities and Exchange Commission (SEC) has proposed a bill it said will ensure that illegal fund managers are not allowed to fleece unsuspecting Nigerians of their hard-earned funds.
The bill proposes that promoters and operators of any entity engaged in a prohibited scheme are liable upon conviction to a penalty of not less than N20,000,000 or imprisonment for a term of 10 years, or both.
In simple term, it is an express prohibition of Ponzi/Pyramid schemes and other illegal investment schemes.
A Ponzi scheme is an investment scam that pays early investors with money taken from later investors to create an illusion of big profits
These and other provisions are contained in the Investments and Securities Bill (ISB) 2024, currently before the National Assembly.
The Bill proposes that promoters and operators of any entity engaged in a prohibited scheme commit an offense and are liable upon conviction to a penalty of not less than N20,000,000 or imprisonment for a term of 10 years, or both.
In his opening remarks at the public hearing held in Abuja, Senator Godswill Akpabio, president of the Senate, described the Investment and Securities Bill 2024 as more than just a legislative document but as a beacon of hope for the nation’s economic landscape.
Represented by Senator Binos Yaroe, Akpabio stated that by repealing the Investment and Securities Act of 2007, Nigeria is taking a bold step toward modernizing its financial markets, fostering transparency, and enhancing investor confidence.
He added that the Bill is designed to create a more robust and equitable environment for investment, ensuring that markets can thrive in an increasingly competitive global economy.
“As we delve into the discussions today, I urge you to embrace this opportunity with an open heart and a discerning mind.
“The importance of your contributions cannot be overstated. We are gathered here to listen, to learn, and to engage in honest dialogue.
“Your insights will help us craft a Bill that not only reflects the aspirations of our people but also addresses the intricate challenges we face in the investment landscape.
“Let us remember that the Senate remains fully committed to the Nigerian people.
“Our mandate is clear: to legislate for the betterment of our society, to create an enabling environment that fosters growth and innovation, and to safeguard the interests of every citizen. Your participation today is a vital part of this commitment.
“Together, we can ensure that the ISB 2024 is not just a piece of legislation but a transformative tool that propels Nigeria toward a future of economic resilience and prosperity.
“In conclusion, I implore you all to engage passionately in today’s discussions. Let us not shy away from challenging conversations; rather, let us embrace them.
“The journey toward a more vibrant investment landscape is one we must undertake together, and your voices are crucial in shaping the path forward.”
In his remarks, Senator Osita Izunaso, chairman of the Senate Committee on Capital Market, stated that the Nigerian capital market is the segment of the financial system in which long-term securities and financial assets are bought and sold, as it channels the wealth of savers and investors to those who can put it to long-term productive use, such as governments and corporate entities.
Izunaso emphasized that in view of Nigeria’s quest for urgent, rapid, and sustainable economic development, a well-developed capital market, which serves as the bedrock for long-term capital raising and industrial development, is imperative.
He noted that, given the crucial role of the Nigerian capital market in catalyzing national economic transformation, the market requires a strong legal framework that conforms to evolving societal and global realities.
“Distinguished ladies and gentlemen, you will all agree with me that fintech has caused many disruptions in the capital market in recent years, such that digital assets platforms are fast gaining ground as a critical aspect of the capital market ecosystem.
“Having operated the ISA 2007 for over 15 years, it has become apparent that the law requires a holistic review to strengthen its existing provisions, remove ambiguities, and introduce new provisions that would enhance the international competitiveness of the Nigerian capital market and reposition the market to more strategically fulfill its role as a critical segment of the Nigerian financial system.”
In his address, Dr. Emomotimi Agama, director-general, SEC, said the Bill also prescribes stringent jail terms and other stiff sanctions for the promoters of Ponzi schemes.
Agama noted that, having operated the ISA 2007 for several years, the Commission identified areas needing review to strengthen existing provisions, remove ambiguities, and introduce new provisions that would enhance the international competitiveness of the Nigerian capital market and reposition it to catalyze national economic transformation.
“A vital provision in the Bill is the new stipulation that the Investor Protection Fund (IPF) set up by the Securities Exchanges would compensate investors who suffer pecuniary losses arising from the revocation or cancellation of the registration of a dealing member firm.
“In the extant law, compensation from the IPF is limited to instances of ‘bankruptcy,’ ‘insolvency,’ or other acts of ‘negligence’ by a dealing member firm.
“This Bill also contains an entirely new part that provides for the regulation of commodity exchanges and warehouse receipts.
“These provisions are essential to allow for the development of the entire gamut of the commodities ecosystem.”
The SEC DG added that world-class capital markets are indispensable to the functioning of a modern economy, as no economy can achieve meaningful advancement without the crucial role capital markets play in supplying medium- to long-term finance.
“There is no doubt that Nigeria needs and deserves a world-class capital market to facilitate ongoing economic diversification.
“The passage and enactment of the Investments and Securities Bill 2023 will be a pivotal step in this direction,” he added.
Debt Management Office (DMO) said the federal government spent N3.14 trillion on servicing its domestic debt in the first quarter of 2026.
The office disclosed the data in its latest domestic debt service report for Q1 2026.
The figure comprises N2.97 trillion in interest payments and N169.68 billion in principal repayments.
The agency said in January, the government spent N741.82 billion on domestic debt service, while the figure rose to N967.67 billion in February.
Debt service increased further to N1.43 trillion in March, bringing the total for the quarter to N3.14 trillion.
The March figure was 47.7 percent higher than the N967.67 billion recorded in February and 92.7 percent above the N741.82 billion spent in January.
Also, the debt office said interest payments accounted for about 94.6 percent of total domestic debt service during the quarter.
The DMO said treasury bills accounted for the largest share of interest payments at N1 trillion, while interest on federal government bonds stood at N1.96 trillion.
The agency said the government also paid N4.24 billion in interest on FGN savings bonds during the period.
The DMO said the principal component of the debt service comprised N169.68 billion in repayments on local-denominated promissory notes.
Overall, the government’s domestic debt service rose sharply through the quarter, with March accounting for almost half of the N3.14 trillion spent between January and March.
Nigeria’s public debt increased by 0.01 percent to N159.35 trillion in the Q1 of 2026.
Interswitch Group, an integrated digital payments and commerce company, together with global banking software provider, Temenos have reassured the Central Bank of Nigeria (CBN) of their commitment to advancing the modernisation of Nigeria’s financial services sector.
Interswitch and Temenos had earlier in June announced a strategic partnership across Africa which would see Interswitch leverage Temenos solutions – across core banking, digital banking, payments, wealth management and financial crime mitigation – to provide cloud-hosted and on-premises managed services to banks and financial institutions across Africa.
This will enable institutions to progressively transform their banking platform and evolve to more customer-centric business models. The service will initially support key African markets including Nigeria, Ghana, Côte d’Ivoire, Kenya and others.
The recent regulatory visit to CBN headquarters in Abuja, was led by the Founder and Group Chief Executive Officer of Interswitch, Mitchell Elegbe, and Managing Director for the Middle East and Africa (MEA) at Temenos, Santhosh Rao, as part of the ongoing efforts by both organisations to deepen collaboration with Central Banks across the African region on the future of digital banking infrastructure across Nigeria and key African markets.
Discussions centred on the strategic partnership between Interswitch and Temenos, and how it will enable Nigerian financial institutions to progressively modernise their core banking platforms and transition to more customer-centric business models.
The two organisations also explored opportunities to work with the CBN in charting new frontiers in Central Bank Digital Currency (CBDC) innovation, leveraging resilient financial networks and decentralised application platforms to support the issuance and management of CBDCs.
Commenting on the visit, Elegbesaid: “Our partnership as Interswitch with Temenos and our continued engagement with the Central Bank of Nigeria reflect a shared commitment to building banking infrastructure that is resilient, inclusive, and ready for the next phase of Africa’s financial evolution.
We are proud to be at the table as these conversations shape the future of digital banking technology and innovation across key Africa markets…”
The Bank of Industry, through BOI Financing SPV Plc, has opened subscriptions for its inaugural Series 1 Fixed Rate Bond worth up to N250bn under its $1bn multi-currency instruments programme, seeking to raise long-term capital to finance businesses across Nigeria’s priority sectors.
The offer, which opened on 5 August and closes on 11 August, is being arranged by Chapel Hill Denham as the lead issuing house. The five-year bond is priced within a yield range of 17.35 per cent to 17.50 per cent and will be listed on the FMDQ Securities Exchange.
According to the offer document, proceeds from the issuance will be deployed to finance eligible businesses and projects across sectors, including agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries and solid minerals, in line with BOI’s development finance mandate.
The lender said the financing is expected to improve access to medium and long-term funding for Nigerian enterprises, expand productive capacity, create and preserve jobs, deepen local value addition, support import substitution, boost exports and strengthen domestic value chains.
BOI, Nigeria’s foremost development finance institution, said it has provided funding to more than one million businesses across the country and disbursed over N1.27tn between 2023 and 2025. The institution operates across 34 states and the Federal Capital Territory and is jointly owned by the Ministry of Finance Incorporated and the Central Bank of Nigeria.
The bank also highlighted its financial performance, reporting a 36 per cent compound annual growth rate in gross earnings between 2021 and 2025.
Interest income rose 64 per cent to N884bn in 2025 from N538bn in the previous year, while its capital adequacy ratio stood at 39 per cent, nearly four times the regulatory minimum of 10 per cent. Its non-performing loan ratio was 1.7 per cent, below the CBN’s prudential limit of five per cent.
The bond has been assigned AAA ratings by Agusto & Co. and Intelligence Africa, reflecting the issuer’s strong capitalization, profitability, liquidity and ownership structure.
The issuance is open to institutional and qualified investors with a minimum subscription of N5m and additional investments in multiples of N1m. Interest will be paid semi-annually at a fixed rate, while principal repayment will begin in the third year through equal semi-annual amortised instalments until maturity in 2031.
The bond is also exempt from tax, making it an attractive investment option for investors seeking stable returns amid expectations of declining interest rates.
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