SEC Vows To Name And Shame Ponzi Scheme Operators And Collaborators In The Domestic Economy

… determined to tackle unclaimed dividends menace

To serve as deterrents, the Securities and Exchange Commission (SEC), said it’s poised to name and shame operators and collaborators of Ponzi Scheme in the domestic economy.

A 2020 report by the Economic and Financial Crimes Commission (EFCC) put the total value of fraud cases investigated between 2015 and 2020 at ₦1.3 trillion (approximately $3.3 billion).

Addressing the press on Thursday in Lagos, after the 2nd Capital Market Committee (CMC) meeting, the SEC Director General, Mr. Emomotimi Agama reeled out the Commission’s efforts at combating Ponzi scheme menace, even as he cited some conviction.

The SEC boss who further reaffirmed the commission’s commitment at protecting investors in the Nigerian capital market, added that SEC, will no longer stop at only prosecution of Ponzi operators, but is ready to start to expose perpetrators to public ridicule.

Giving some major milestone to safeguard investments and investors in the capital market, Mr. Agama realed out some key initiatives to include; enhancing investor protection through improved complaints management and Investor Protection Fund.

“Implementing enterprise risk management frameworks for Capital Market Operators (CMOs).

“Enhance reporting on Politically Exposed Persons (PEPs) and Suspicious Transaction Reports (STRs).

“Improve complaints management and investor protection and
collaborate with financial sector regulators to combat Ponzi schemes, as well as promoting cybersecurity and investor education.

On the issue of unclaimed dividends which current figure is put at N215 billion as at December 2023, Mr. Agama said the rise in figure is due to the old unclaimed that is yet to be cleared.

While explaining that the commission is putting in place a dedicated desk to tackle the issue of unclaimed dividends headlong, noted that, “regarding the payment of outstanding dividends for mandated accounts, compliance remains significantly low. Issues such as failed payments, dormant or closed accounts, and insufficient funding by public companies after reaching the 90% return threshold have been identified as contributing factors.

Mr. Agama who expressed market stakeholders concerns as to the slow treatment of mandates by registrars and banks, said that, “the flow of KYC data from secondary market transactions to registrars is showing improvements, adding that, a comprehensive approach is necessary. This involves transmitting all essential KYC information alongside transaction details in a standardised format.

To manage systemic risks, he disclosed that the SEC had mandated CMOs to prepare and submit their enterprise risk management frameworks and annual risk profiles to the Commission while also collaborating with other financial sector regulators and agencies in efforts to assist Nigeria in exiting the FATF grey list.

While urging CMOs to ensure compliance with the Nigerian Sanctions Alert System and to enhance reporting on Politically Exposed Persons (PEPs) and Suspicious Transaction Reports (STRs), the SEC DG also informed members of initiatives aimed at ensuring that the rulemaking process of the Commission becomes faster and more efficient.

“These include defragmenting the rules with a view of codifying the rules into a comprehensive rule book. Also, the Commission is presently updating rules on digital assets, has put in place guidelines for the banking recapitalisation exercise, as well as come up with guidelines for on boarding Virtual Assets Service Providers.

“We are also embarking on other initiatives to safeguard investors in private bonds, noting that the Commission is reviewing its relevant rules and will soon release rules on private markets” he stated.

Agama expressed the determination of the Commission to continue to encourage companies to list and urged the exchanges to take steps to attract new listings to align with the government’s $1 trillion economy target.

“We believe that strengthening regulatory bodies, enhancing enforcement, and adopting international best practices are essential to market efficiency, transparency and global competitiveness. Also, promoting good corporate governance, encouraging private sector investment, developing alternative assets, and incentivising corporate bond issuance are crucial to market growth and development. Additionally, more companies should be encouraged to list on the exchange to improve market making and liquidity” he added.


Agama noted that the fight against cyber crimes  remains a priority, with the Nigerian government implementing policies and establishing a cybersecurity committee within the capital market to manage and disseminate critical information, with the Commission at the vanguard of the initiatives. These initiatives underscore the SEC’s commitment to fostering a secure and robust capital market environment in Nigeria.