News Highlights:
- Fraudulent investment schemes now attract a minimum ₦20 million fine, a 10-year prison term, or both.
- The new law strengthens cryptocurrency regulation and enables states to access capital market funding for infrastructure.
Promoters and operators of prohibited investment schemes now face a penalty of at least ₦20 million, a 10-year prison term, or both.
Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, issued this warning on Wednesday while addressing journalists in Abuja.
He emphasized that fraudulent investment schemes and market manipulation will no longer be tolerated as the Securities and Exchange Commission (SEC) takes full control of cryptocurrency regulation.
“The new law is designed to protect investors’ money. Before now, people engaged in Ponzi schemes without consequences. If caught, apart from paying a fine, you will go to jail. Initially, we proposed a 20-year sentence, but 10 years has been approved,” he stated.
Izunaso also highlighted that the law now enables sub-nationals to secure long-term funding through the capital market, and urged state governments to leverage this opportunity for infrastructure financing, noting that regulatory reforms have simplified the process.
“Every state can now approach the capital market for funding without unnecessary bottlenecks. This will drive infrastructural development across the country,” he said.
Addressing concerns about digital assets and cybercrime, he assured Nigerians that the new securities law provides a comprehensive framework for regulating cryptocurrency and other digital financial instruments.