- Senate proposed up to 10 years in prison for Ponzi scheme operators under new Bill
- Senate President Akpabio called the Bill "a beacon of hope" for Nigeria’s economy, emphasising transparency and investor confidence
- New legislation addressed emerging challenges in the financial technology (fintech) space and strengthened market oversight
In a new legislative move, the Senate has proposed that individuals involved in promoting or running Ponzi schemes and other illegal investments face up to 10 years in prison, fines of at least N20 million, or both.
During a public hearing on Thursday, November 14 at the National Assembly, Emomotimi Agama, the director-general of the Securities and Exchange Commission (SEC), stated, “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.”
Senate moves to replace 2007 investment and securities Act
The Investment and Securities Bill, 2024, having passed its second reading, proposed to replace the 2007 Investment and Securities Act with a more effective and advanced legal framework.
Agama noted that the Bill provides a clear outline of the SEC’s roles and powers. He emphasised that the enhanced responsibilities and powers are aimed at strengthening the SEC’s enforcement capabilities, helping it uphold its “Signature A” status.
The Bill introduces several new provisions, including empowering the SEC to oversee and regulate derivatives markets, collateral management firms, and warehouses issuing warehouse receipts.
Additionally, it strengthens the SEC’s role in overseeing mergers and acquisitions of public companies and extends its powers to prevent and penalise illegal or unauthorised activities in securities and investment schemes.
Proposed investment Bill strengthens SEC’s authority
The Bill further addressed evolving concerns within the financial technology (fintech) space.
The proposed Bill extends the scope of registration and regulation to include every financial market infrastructure and trading venue facilitating the trading of securities.
Representing Senate President Godswill Akpabio, Senator Binos Yaroe highlighted the Bill's significance, calling it "a beacon of hope" for the future of Nigeria’s economy.
Akpabio highlighted that the Bill represents a significant move towards modernising the financial markets, increasing transparency, and fostering greater investor confidence.
ISB 2024 will be a transformative tool for Nigeria’s economy, Akpabio
“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,” Akpabio stated.
“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.”
Akpabio further said, “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,” Akpabio stated.
Reps push new bill to create special seats for women and persons living with disabilities
Meanwhile, TheRadar earlier reported that special seats for women and persons with disabilities were filled through an electoral college system, ensuring representation for these groups in the Green Chamber.
The bill aimed to amend the 1999 constitution to add six special seats, one for each special interest group, distributed across Nigeria's six geo-political zones.