Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market, has issued a stern warning to individuals and entities involved in fraudulent investment schemes. According to the new law recently assented to by President Bola Tinubu, promoters and operators of prohibited schemes now face stringent penalties, including a minimum fine of ₦20 million or a 10-year jail term, or both.
Speaking to journalists in Abuja, Senator Izunaso emphasized that the era of Ponzi schemes and market manipulations is over, as the Securities and Exchange Commission (SEC) has been empowered to regulate cryptocurrency trading more effectively. He noted that prior to this legislation, perpetrators of such schemes often escaped without consequences, leaving investors vulnerable to financial losses.
“This law is specifically designed to safeguard investors’ funds. Those caught operating illegal financial schemes will not only pay a hefty fine but also serve a prison term. Initially, we proposed a 20-year sentence, but after deliberations, a 10-year term was approved,” he stated.
Furthermore, the senator highlighted that the legislation now enables state governments to access long-term funding through the capital market with reduced bureaucratic constraints. He urged state governments to leverage the SEC’s streamlined processes to secure funding for critical infrastructure projects.
“States can now approach the capital market without unnecessary hurdles, facilitating the much-needed infrastructural development across the country,” he explained.
Addressing concerns regarding digital assets and cybercrime, Izunaso assured Nigerians that the new securities law provides a comprehensive regulatory framework for cryptocurrency and other digital financial instruments. This measure aims to enhance financial security and protect investors in the rapidly evolving digital economy.
Echezona Okafor.
