The Securities and Exchange Commission has sought the support of the Nigeria Police Force to intensify efforts to clamp down on cryptocurrency fraudsters, Ponzi scheme operators and other investment scammers operating outside the regulated capital market.
The Director-General of the SEC, Emomotimi Agama, made the call during a courtesy visit to the Inspector-General of Police, Kayode Egbetokun, at the Force Headquarters on Wednesday in Abuja, where he stressed the need for stronger collaboration to protect investors and safeguard Nigeria’s financial system.
Agama said the commission, as the apex regulator of the capital market, is mandated to protect investors, ensure fair and transparent markets and promote economic growth, but noted that many fraudulent operators function beyond the commission’s regulatory reach.
According to him, these criminals exploit public trust by promising unrealistic returns and disguising fraudulent schemes as cryptocurrency or forex investments, leaving many Nigerians with depleted savings, lost pensions and shattered confidence.
“We are gathered here today, united by a single urgent mission: to protect the hard-earned savings and financial dreams of the Nigerian people. We are here to forge an alliance against a common enemy—the sophisticated, predatory and heartless criminals who operate Ponzi schemes, investment frauds, cryptocurrency scams and related offences.SEC is the sentinel at the gates of Nigeria’s formal capital market.
“However, we face adversaries who operate in the shadows outside our regulated markets. They exploit the trust of our people. They promise absurd returns such as 200 per cent in 30 days and similar falsehoods. They cloak their deceit in the glamorous but often misunderstood language of cryptocurrency and forex trading, targeting the vulnerable, the optimistic and the unsuspecting—leaving behind shattered lives, depleted pensions and broken trust,” he said.
Agama described investment fraud and Ponzi schemes as not only financial crimes but also a social menace capable of eroding confidence in the entire financial system, adding that effective enforcement requires the investigative powers and nationwide reach of the police.
“This is not just a financial crime; it is a social menace that erodes public confidence in our entire financial system. This is where our authority as the SEC meets its necessary complement—your power as the Nigerian Police Force, your reach and your constitutional mandate.
“The Nigeria Police Force is the primary law-enforcement agency with nationwide presence, investigative capacity, and authority to track, apprehend and bring these criminals to justice. Where we identify illegality and regulatory breaches, you possess the apparatus for criminal investigation, arrest and prosecution,” he said.
The SEC boss said the need for collaboration has become more urgent following the recent milestone of the Nigerian capital market attaining a N100 trillion market capitalisation, which has encouraged increased participation by Nigerian investors.
He warned that without strong investor protection and enforcement, public confidence in the market could be undermined.
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As part of the proposed collaboration, Agama outlined plans for a more robust institutional partnership, including strengthening the Police Enforcement Unit attached to the SEC, establishing joint intelligence and operations teams, and building the capacity of police officers in understanding capital market instruments, Ponzi schemes and crypto-related fraud.
“Accordingly, we propose a robust, institutionalised collaboration built on the following pillars: First, a Joint Intelligence and Operations Task Force. The Nigerian Police Force has graciously provided officers to the SEC for over a decade, for which we are deeply grateful. We believe this visit will further strengthen that unit and make it more effective, while leveraging the extensive resources of the police nationwide.
“This includes establishing a dedicated SEC–MPF team combining our market intelligence, forensic accounting expertise and understanding of complex financial schemes with your investigative and intelligence-gathering capabilities. This team will serve as a rapid-response unit against emerging scams. Second, capacity building and knowledge transfer.
“Third, a streamlined enforcement process, with clear fast-track channels for the SEC to refer cases of blatant fraud and unlicensed investment schemes to the police for immediate criminal action, beyond administrative sanctions and the work of the police unit attached to the SEC,” he said.
In his response, the Inspector-General of Police congratulated the SEC on the achievement of the N100 trillion market capitalisation, describing it as a significant milestone for the Nigerian economy.
Egbetokun assured the commission of the police’s readiness to deepen collaboration, strengthen the enforcement unit attached to the SEC and deploy the force’s investigative and cybercrime capabilities to curb financial crimes.
“I assure you that the Nigerian Police Force is ready to deepen its collaboration with the SEC. We will strengthen our partnership and support you in every possible way to ensure the achievement of your objectives,” he said.
He added that effective enforcement would boost investor confidence, stabilise the market, promote compliance and ultimately contribute to economic growth.
The Inspector-General also said the police operate one of the best cybercrime centres in the region and would deploy its resources to support the SEC’s enforcement drive against investment fraud and related offences.
Nigeria has continued to record a rise in investment-related fraud, particularly Ponzi schemes and unregulated cryptocurrency and forex platforms that promise unusually high returns to unsuspecting members of the public.
These schemes often operate outside the formal capital market, exploiting enforcement gaps and low public awareness, and have resulted in significant financial losses for investors.
