SEC backs bill seeking 10yrs jail for ponzi schemers
The Director General, Securities and Exchange Commission (SEC), Lamido A. Yuguda, has disclosed that the overhaul of the operations and structure of Nigeria’s capital market has been long overdue, as a result of emerging innovations and other dynamics. He disclosed this while making a submission at a two-day public hearing before the House Committee on […]
Director General of SEC, Lamido Yuguda
The Director General, Securities and Exchange Commission (SEC), Lamido A. Yuguda, has disclosed that the overhaul of the operations and structure of Nigeria’s capital market has been long overdue, as a result of emerging innovations and other dynamics.
He disclosed this while making a submission at a two-day public hearing before the House Committee on Capital Market and Institutions on Tuesday.
The DG of SEC stated that the promoters of Ponzi and Pyramid schemes risk 10 years jail term in Nigeria as provided in the proposed bill to repeal the Investments and Securities Act, 2007.
“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,” he said.
The public hearing is on two bills: “A Bill for an Act to Repeal the Investments and Securities Act, 2007, and Enact The Investments And Securities Bill to Establish Securities And Exchange Commission as the Apex Regulatory Authority for the Nigeria Capital Market as Regulation of the Market to Ensure Capital Formation, the Protection of Investors, Maintain Fair, Efficient and Transparent Market and Reduction of Systemic Risk for Related Matters (HB-1787) and “A Bill for an Act to Repeal the Chartered Institute of Stockbrokers Act, CAP.C9, Law of the Federation of Nigeria, 2004 and Provide for Establishment of Chartered Institute of Securities and Investments and for Related Matters (HB 1858)”.
Yuguda also said: “There is no doubt that Nigeria needs and in fact deserves an internationally competitive and well-functioning capital market to facilitate the ongoing economic diversification.”
Chairman, House Committee on Capital Markets and Institutions, Babangida Ibrahim, said after interactions with critical stakeholders in the capital market subsector of the economy, it became imperative to strive towards achieving a vibrant capital market in the country.
Ibrahim noted that the bill will also amend the criteria for borrowing by sub-nationals and strengthen the enforcement powers of SEC.
The Speaker, Femi Gbajabiamila, represented by the Deputy House Leader, Peter Akpatason said, capital markets provide access to funding for new and existing businesses to innovate, expand and adapt to market changes and thrive.