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Promoters of Ponzi and Pyramid schemes risk 10 years’ jail term in Nigeria, according to the provisions of a proposed bill to repeal the Investments and Securities Act, 2007.
This was disclosed by the Director-General, Securities and Exchange Commission (SEC), Lamido Yuguda, while making a submission at a two-day public hearing before the House Committee on Capital Market and Institutions on Tuesday.
The public hearing was held on two bills: “A Bill For An Act To Repeal The Investments And Securities Act, 2007; And Enact The Investments And Securities Bill To Establish Securities And Exchange Commission As The Apex Regulatory Authority For The Nigeria Capital Market As Regulation Of The Market To Ensure Capital Formation, The Protection Of Investors, Maintain Fair, Efficient And Transparent Market And Reduction Of Systemic Risk For Related Matters (HB-1787).
The second bill is “A Bill For An Act To Repeal The Chartered Institute Of Stockbrokers Act, CAP.C9, Law Of The Federation Of Nigeria, 2004 And Provide For Establishment Of Chartered Institute Of Securities And Investments And For Related Matters (HB 1858).”
He said, having operated the bill since July 2007, the Commission had observed some areas that require review in order to be strengthened, remove ambiguities and introduce new provisions that will enhance and reposition the Nigerian Capital Market for international competitiveness and National Economic Transformation.
He said, ” There is no doubt that Nigeria needs and in fact deserves an internationally competitive and well-functioning capital market to facilitate the ongoing economic diversification. The passage and enactment of the Investments and Securities Bill 2022 will be a pivotal step in this direction.
“Importantly, the bill introduces an express prohibition of Ponzi/Pyramid Schemes as well as other illegal investment schemes. The bill also prescribes a jail term of not less than 10 years for promoters of such schemes”.
