SEC Crackdown: Celebrities, Bloggers Face 10-Year Jail Term for Promoting Ponzi Schemes

The Securities and Exchange Commission (SEC) has issued a strong warning to celebrities, influencers, and bloggers promoting unregistered and fraudulent investment schemes, stating that they now risk imprisonment under Nigeria’s new Investments and Securities Act (ISA) 2025.

Signed into law by President Bola Ahmed Tinubu, the ISA 2025 introduces stringent penalties, including fines starting at ₦20 million and a minimum of 10 years in jail for those found guilty of promoting Ponzi schemes. For the first time in Nigerian law, Ponzi operations are clearly defined, giving the SEC enhanced legal authority to take decisive action against fraudulent financial schemes.

In a statement released on Sunday, the Commission announced that it is working closely with agencies including the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other government bodies to identify, investigate, and prosecute individuals and platforms involved in illicit investment promotions.

SEC Director General Dr. Emomotimi Agama emphasized that influencers who promote fake schemes on their platforms will face serious consequences. He advised them to immediately cease endorsing unverified investments, stressing that the new law specifically targets such behavior.

Dr. Agama also urged Nigerians to remain vigilant when approached with investment opportunities that promise unrealistic returns. “People must be careful, ask questions, and consult professionals before investing their hard-earned money,” he said.

In response to recent fraudulent operations, particularly the collapse of CBEX—a digital investment scheme that allegedly defrauded Nigerians of over ₦1.3 trillion—the SEC has strengthened its internal monitoring systems. According to Dr. Agama, the Commission has established new departments dedicated to surveillance and inspections to swiftly detect and act against suspicious market activity. “Once we hear anything, we do something,” he said, reinforcing the SEC’s proactive stance.

CBEX had attracted thousands of Nigerians with promises to double their investments within a month, falsely claiming ties to international organizations. The SEC says it is determined to bring its promoters to justice and prevent similar incidents from recurring.

Beyond clamping down on Ponzi schemes, the new law extends SEC’s regulatory oversight to the digital asset space. All Virtual Asset Service Providers and Digital Asset Exchanges are now required to register with the Commission and operate within established guidelines—an important shift that closes longstanding regulatory gaps in the crypto and digital investment market.

Dr. Agama reaffirmed the SEC’s commitment to investor protection and financial market integrity. “The SEC is capable, has the capacity, and will deal decisively with anyone caught in this mess,” he declared.

As part of its broader reform agenda, the Commission is intensifying investor education efforts through podcasts, social media campaigns, and school curriculum integration. Dr. Agama encouraged Nigerians to verify all investment opportunities directly with the SEC and remain skeptical of offers that seem “too good to be true.”

He concluded by highlighting the role of the capital market in democratizing wealth, noting that ISA 2025 marks a major step toward building a secure and inclusive financial system for all Nigerians.

With this new law in place, the SEC says the era of unchecked exploitation through social media and digital platforms is coming to an end.