The Securities and Trade Fee has known as on the Nigeria Police Drive to accentuate joint efforts towards Ponzi scheme operators, cryptocurrency scammers and different fraudulent funding actors working exterior Nigeria’s regulated capital market.
The enchantment was made by the Director-Common of the SEC, Emomotimi Agama, throughout a courtesy go to to the Inspector-Common of Police, Kayode Egbetokun, on the Drive Headquarters in Abuja on Wednesday. Agama pressured that nearer collaboration between each establishments was vital to defending traders and preserving confidence within the nation’s {financial} system.
He defined that whereas the fee is legally mandated to guard traders, guarantee market transparency and promote {economic} development, many fraudulent operators intentionally operate past the attain of capital market laws.
In response to Agama, these actors prey on unsuspecting Nigerians by providing unrealistic funding returns and presenting fraudulent schemes as authentic cryptocurrency or international change alternatives, usually wiping out life financial savings and pensions.
He mentioned, “We’re gathered right here immediately, united by a single pressing mission: to guard the hard-earned financial savings and {financial} desires of the Nigerian individuals. We’re right here to forge an alliance towards a standard enemy, the subtle, predatory and heartless criminals who function Ponzi schemes, funding frauds, cryptocurrency scams and associated offences. SEC is the sentinel on the gates of Nigeria’s formal capital market.
“Nevertheless, we face adversaries who function within the shadows exterior our regulated markets. They exploit the belief of our individuals. They promise absurd returns resembling 200 per cent in 30 days and related falsehoods. They cloak their deceit within the glamorous however usually misunderstood language of cryptocurrency and foreign currency trading, focusing on the susceptible, the optimistic and the unsuspecting—abandoning shattered lives, depleted pensions and damaged belief.”
Agama described Ponzi schemes and funding fraud as threats that transcend {financial} loss, warning that they undermine confidence in the whole {economic} system. He famous that efficient enforcement requires the investigative authority and nationwide presence of the police.
He mentioned, “This isn’t only a {financial} crime; it’s a social menace that erodes public confidence in our total {financial} system. That is the place our authority because the SEC meets its mandatory complement—your energy because the Nigerian Police Drive, your attain and your constitutional mandate.
“The Nigeria Police Drive is the first law-enforcement company with nationwide presence, investigative capability, and authority to trace, apprehend and produce these criminals to justice. The place we determine illegality and regulatory breaches, you possess the equipment for felony investigation, arrest and prosecution.”
The SEC Director-Common added that the urgency for collaboration had elevated following the Nigerian capital market’s attainment of a N100 trillion market capitalisation, which has drawn extra retail traders into the market. He cautioned that weak enforcement may erode the boldness wanted to maintain this development.
As a part of the proposed partnership, Agama outlined plans to strengthen the Police Enforcement Unit hooked up to the SEC, set up joint intelligence and operational groups, and supply focused coaching for cops on capital market devices, Ponzi schemes and crypto-related fraud.
He mentioned, “Accordingly, we suggest a strong, institutionalised collaboration constructed on the next pillars: First, a Joint Intelligence and Operations Activity Drive. The Nigerian Police Drive has graciously supplied officers to the SEC for over a decade, for which we’re deeply grateful. We imagine this go to will additional strengthen that unit and make it simpler, whereas leveraging the intensive sources of the police nationwide.
“This consists of establishing a devoted SEC–MPF staff combining our market intelligence, forensic accounting experience and understanding of complicated {financial} schemes together with your investigative and intelligence-gathering capabilities. This staff will function a rapid-response unit towards rising scams. Second, capability constructing and data switch.
“Third, a streamlined enforcement course of, with clear fast-track channels for the SEC to refer circumstances of blatant fraud and unlicensed funding schemes to the police for fast felony motion, past administrative sanctions and the work of the police unit hooked up to the SEC.”
Responding, the Inspector-Common of Police congratulated the fee on the N100 trillion market capitalisation milestone, describing it as a notable achievement for the Nigerian financial system. He assured the SEC of the police’s dedication to deepening cooperation and deploying its investigative and cybercrime sources to fight {financial} crimes.
Egbetokun mentioned, “I guarantee you that the Nigerian Police Drive is able to deepen its collaboration with the SEC. We’ll strengthen our partnership and help you in each potential means to make sure the achievement of your goals.”
He added that efficient enforcement would improve investor confidence, stabilise the market, enhance compliance and contribute to total {economic} development. The IG additional famous that the police function one of many strongest cybercrime centres within the area and would apply its capabilities to help the SEC’s crackdown on funding fraud.
Nigeria has lately recorded a surge in investment-related scams, notably Ponzi schemes and unregulated cryptocurrency and foreign exchange platforms providing unusually excessive returns.
These schemes usually thrive exterior the formal capital market, exploiting enforcement gaps and restricted public consciousness, and have resulted in substantial {financial} losses for a lot of Nigerians.