Assets Recovered from Ponzi Schemes to Be Forfeited to FG- SEC

By Oluwakemi Kindness

The Securities and Exchange Commission (SEC) has declared that all funds and assets recovered from operators of illegal investment and Ponzi schemes will be forfeited to the Federal Government under the new Investment and Securities Act (ISA) 2025.

This was disclosed by the Head, Fintech and Innovation Department of the Commission, AbdulRasheed Dan-Abu, while speaking at the 2025 Abuja Journalists Academy.

Dan-Abu explained that the new legal framework empowers the Commission to seal off fraudulent schemes, freeze bank accounts, and confiscate assets linked to such operations.

“The law also says there will be forfeiture of recovered assets to the Federal Government,” he said, adding that the measure would serve as both a deterrent and a tool to strengthen market integrity.

He lamented the billions of naira lost to Ponzi operators in recent years, warning that many Nigerians continue to fall prey to schemes promising unrealistic returns.

Describing such operations as a growing national concern, Dan-Abu emphasized that investor education and vigilance remain key to curbing the menace.

He noted that the Commission has intensified collaboration with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigerian Financial Intelligence Unit (NFIU), and the Central Bank of Nigeria (CBN), to trace illicit funds and prosecute offenders.

Dan-Abu also disclosed that the SEC is stepping up efforts to license and regulate digital investment platforms, in line with government efforts to protect investors in the fast-evolving financial technology sector.

“Investor protection remains our top priority. Trust is the ultimate currency in the capital market,” he stressed.

Meanwhile, SEC Director-General, Emomotimi Agama, urged Nigerians to verify the registration status of any investment company through the Commission’s official website or public inquiry channels before investing.