The Securities and Exchange Commission (SEC) of Nigeria has stated that the proposed Investments and Securities Bill (ISB) will prevent the rise of Ponzi/Pyramid schemes and other illegal investment schemes.
The SEC Director-General, Mr Lamido Yuguda, made the announcement on Sunday in Abuja.
He also stated that it would help the Nigerian financial services industry grow.
Yuguda noted that the passage of the bill would facilitate the effective functioning of the capital market to make it more competitive and also help in the ongoing economic diversification in the country.
He urged lawmakers to make the bill a reality, citing that expanding the categories of issuers is a key step toward introducing new innovations and offerings such as crowd-funding.
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.
It expands the definition of a Collective Investment Scheme to include schemes offered privately to qualified investors.
Minor reviews on various sections of the extant law have been carried out to provide greater clarity, he said.
He noted that collaboration with National Pension Commission (PenCom) on the SEC Board for increased synergy is a major factor of the bill, which would also benefit the Nigerian pension fund industry.
