Nigerians lost N300.2 billion to Ponzi Scheme in recent years – SEC

The Securities and Exchange Commission (SEC) has revealed that Nigerians lost N300.2 billion to Ponzi schemes in recent years. The amount, which excluded CBEX, cut across fraudulent investment schemes including MMM, Famzhi Interbiz Ltd, and MBA Forex and Capital Investment.

Per The Nations report, the commission’s Head of Fintech and Innovation Department, AbdulRasheed Dan-Abu, at the 2025 Journalists Academy organised by the SEC in Abuja on Thursday, explained that the number was compiled based on in-depth findings into famous Ponzi Schemes. He said these fraudulent schemes have thrown Nigerians and various households into shambles. 

He further mentioned that these ‘notorious’ Ponzi Schemes promised investors ‘extraordinarily high’ and unsustainable returns.

“The losses, drawn from investigations into some of the country’s most notorious Ponzi and illegal investment schemes, reveal the devastating financial and social impact of these operations on households and small investors,” he added. 

The estimated N300.2 billion, according to Dan-Abu, did not include all Ponzi Schemes such as CBEX, which reportedly caused Nigerian losses amounting to N1.4 trillion. In addition to CBEX, other unregistered schemes have caused Nigerians additional losses estimated at close to tens of billions of naira.

“These figures represent only a portion of the total losses suffered by the investing public. The actual losses could be far more significant given the number of unreported cases and the proliferation of online schemes that evade regulatory scrutiny,” a source close to the report noted. 

A breakdown of the N300.2 billion showed that MMM Nigeria accounted for about N18 billion. The MBA Forex and Capital Investment Ltd scheme accumulated about N213 billion from Nigerians before its collapse, while Nospecto Oil and Gas defrauded investors of roughly N45 billion. 

Other Ponzi Schemes are Chinmark Group, Ovaioza Farm Produce Storage Business, and Famzhi Interbiz Ltd, where they collectively cost Nigerians over N24 billion.

As the total losses were tagged as now being the true picture of the losses to Ponzi Schemes in Nigeria, analysts posit that the addition of unreported cases would escalate the figure. 

Months ago, embattled investment platform CBEX crashed after it suddenly blocked investors from withdrawing. The episode led to a loss of about N1.3 trillion, reportedly invested by over 600,000 Nigerians.

Following that episode, the Economic and Financial Crimes Commission (EFCC), alongside the SEC, vowed to clamp down on operators of the Ponzi Scheme and promoters of CBEX. Since then, the EFCC has arrested several promoters and recovered an undisclosed amount from the scheme. 

Also Read: Angry investors loot CBEX office in Ibadan amid $847 million Ponzi scheme collapse.

Ongoing efforts to crack down on Ponzi schemes 

The SEC, EFCC, Nigerian Financial Intelligence Unit (NFIU), and the Central Bank of Nigeria (CBN) have vowed to identify and freeze accounts linked to illegal investment operators. In addition, the SEC has channelled its regulatory power to protect investors and preserve the integrity of Nigeria’s financial system.

For instance, the commission said the fight against Ponzi schemes had gained a new momentum following the signing of the Investment and Securities Act (ISA) 2025 by President Bola Tinubu in March. The law empowers the commission to prosecute Ponzi scheme promoters with a sentencing of at least 10 years’ imprisonment, while they could also face a N40 million penalty.

The SEC DG, Emomotimi Agama, said in March that the penalty is not the entire fee that will be charged or imposed on such an offender. He added that the money is just part of the penalties and/or sanctions that will be meted out against such persons. 

“One of the basic things around sanctions is that there will be disgorgement, and disgorgement means that we are going to make sure that every profit and every gain that has been achieved in the process of defrauding Nigerians will be gotten back.  It is not about the quantum of the fraud, it is about sanctions that would deter people from even getting into it,” he added. 

Agama also expressed that the ISA Act aims to provide the SEC with the authority to sanction offenders, bring them to book, and ensure they can rehabilitate victims as much as possible.

In addition to the ISA, the commission also has a strategy combining investor education, strict enforcement, and inter-agency collaboration. This includes partnerships with relevant agencies to create awareness for Nigerians on verifying a company’s regulatory status before investing and knowing how to identify a Ponzi Scheme.