The Securities and Change Fee has known as on the Nigeria Police Drive to accentuate joint efforts in opposition to Ponzi scheme operators, cryptocurrency scammers and different fraudulent funding actors working outdoors Nigeria’s regulated capital market.
The attraction was made by the Director-Normal of the SEC, Emomotimi Agama, throughout a courtesy go to to the Inspector-Normal of Police, Kayode Egbetokun, on the Drive Headquarters in Abuja on Wednesday. Agama harassed that nearer collaboration between each establishments was essential to defending traders and preserving confidence within the nation’s monetary system.
He defined that whereas the fee is legally mandated to guard traders, guarantee market transparency and promote financial progress, many fraudulent operators intentionally perform past the attain of capital market rules.
In keeping with Agama, these actors prey on unsuspecting Nigerians by providing unrealistic funding returns and presenting fraudulent schemes as professional cryptocurrency or international alternate alternatives, usually wiping out life financial savings and pensions.
He stated, “We’re gathered right here right this moment, united by a single pressing mission: to guard the hard-earned financial savings and monetary desires of the Nigerian individuals. We’re right here to forge an alliance in opposition to 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 outdoors our regulated markets. They exploit the belief of our individuals. They promise absurd returns equivalent to 200 per cent in 30 days and comparable falsehoods. They cloak their deceit within the glamorous however usually misunderstood language of cryptocurrency and foreign currency trading, concentrating 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 monetary loss, warning that they undermine confidence in the complete financial system. He famous that efficient enforcement requires the investigative authority and nationwide presence of the police.
He stated, “This isn’t only a monetary crime; it’s a social menace that erodes public confidence in our whole monetary system. That is the place our authority because the SEC meets its needed 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 legal investigation, arrest and prosecution.”
The SEC Director-Normal 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 might erode the arrogance wanted to maintain this progress.
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 law enforcement officials on capital market devices, Ponzi schemes and crypto-related fraud.
He stated, “Accordingly, we suggest a strong, institutionalised collaboration constructed on the next pillars: First, a Joint Intelligence and Operations Job Drive. The Nigerian Police Drive has graciously offered officers to the SEC for over a decade, for which we’re deeply grateful. We consider 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 group combining our market intelligence, forensic accounting experience and understanding of complicated monetary schemes along with your investigative and intelligence-gathering capabilities. This group will function a rapid-response unit in opposition to rising scams. Second, capability constructing and information 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 instant legal motion, past administrative sanctions and the work of the police unit hooked up to the SEC.”
Responding, the Inspector-Normal of Police congratulated the fee on the N100 trillion market capitalisation milestone, describing it as a notable achievement for the Nigerian economic system. He assured the SEC of the police’s dedication to deepening cooperation and deploying its investigative and cybercrime sources to fight monetary crimes.
Egbetokun stated, “I guarantee you that the Nigerian Police Drive is able to deepen its collaboration with the SEC. We are going to strengthen our partnership and help you in each potential method to make sure the achievement of your aims.”
He added that efficient enforcement would improve investor confidence, stabilise the market, enhance compliance and contribute to general financial progress. 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 in recent times 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 outdoors the formal capital market, exploiting enforcement gaps and restricted public consciousness, and have resulted in substantial monetary losses for a lot of Nigerians.
