News
Reps propose 10-year jail term for promoters of Ponzi schemes
The House of Representatives on Thursday proposed a 10-year jail term for promoters of Ponzi schemes in the country.
This followed the presentation of a bill on the repeal of the Investment and Securities Act, 2007 by a lawmaker from Katsina State, Babangida Ibrahim, at the plenary.
The bill which scaled the second reading on the floor of the House seeks to make the Securities and Exchange Commission (SEC) the apex regulatory body for the Nigerian capital market.
It will also enable SEC to regulate the capital market, ensure capital formation, protect the market to ensure capital formation, protect investors, maintain fair, efficient, and transparent market and reduce systematic risks.
READ ALSO: EFCC raises the alarm over fraudulent investment schemes
The lawmaker, who led the debate on the bill, said: “The bill prohibits Ponzi/Pyramid Schemes as well as other illegal investment schemes and prescribes a jail term of not less than 10 years for promoters of such schemes. The Commission would also be empowered to shut down such prohibited investment schemes.
“We are enhancing provisions relating to efficient regulation of investment scheme. Recently there were complaints by Nigerians which forced the Federal Government to place an embargo on Ponzi schemes. So as of the time of signing the current act, the Ponzi scheme was not in existence in Nigeria. So we have to put some regulations to monitor them.”
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
German Police bust alleged Nigerian scam dating ring
German authorities have arrested eleven individuals suspected of being members of a Nigerian mafia group involved in a large-scale dating...
INVESTIGATION: In Kwara, multimillion-naira milk processing plant is abandoned, converted to a chicken outlet
After the government spent millions of naira to establish a milk processing plant in Kwara State that would provided jobs...
SPECIAL REPORT: For Sokoto communities, promise of healthcare is akin to death sentence
In this story, ABDULRASHEED HAMMAD delves into the dire realities of Primary Health Care services in Sokoto State, shedding light...
ICYMI…SPECIAL REPORT: NNPCL hides behind PIA to frustrate disclosure, accountability
Nigeria’s major oil company, Nigerian National Petroleum Corporation Limited (NNPCL), in what appears to be a common practice of disregard...
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...