Latest news with #EmomotimiAgama
Zawya
01-05-2025
- Business
- Zawya
Nigeria: Shun investment schemes parading only CAC, EFCC certificates — SEC warns
The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama has warned Nigerians to beware of firms that claim that the registration of their companies with the Corporate Affairs Commission (CAC)and SCUML certificate from the Economic and Financial Crimes Commission (EFCC) have empowered them to operate investment schemes in Nigeria. Agama said this during an interview with journalists on Wednesday at the sidelines of a sensitisation tour against Ponzi scheme held at the Garki Market in Abuja. He said it was disheartening that some Nigerians and foreign companies have specialised in defrauding Nigerians through Ponzi Schemes, adding that the government will no longer sit back and watch billions of naira taken away from the people through ponzi schemes. The SEC DG said it is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC. Agama said, 'It is disheartening that some Nigerians and foreign accompanies have specialised in duping Nigerians and govt won't sit and watch Nigerians being duped and this is what SEC is coming out to the people to educate them that if it too good to be true, then watch out. 'We have seen many Ponzi schemes in the past, and the Investments and Securities Act had been signed into law by the President and the law recommends N20m fine and 10 years imprisonment for offenders of Ponzi Scheme. 'So, that has empowered us to be in a better position to flush out all these fraudulent investment schemes that are damaging our economy 'We are using this sensitisation outreach to bring information to our people and that is why we are here and telling them that we are here to assist them to confirm legitimate investment schemes and we are letting them know we feel their pain. 'As we are doing this, we have helped to educate them against being duped. CAC registration and EFCC certificate is not enough to show that the company is registered with SEC and these are red flags. 'Training programmes being organised by these people to lure people into their schemes are also illegal. Verify before you invest in any scheme, and that is our message to Nigerians.' Also speaking to journalists,the Assistant Director, Enforcement Department, SEC, Tope Onwionoko, said the management of the Commission is very passionate about financial literacy, especially with respect to Ponzi schemes that have become a scourge in society of late. She said, ' So, we want everybody to know about it, from the oldest to the youngest, from the rich to the poor. We want the message to go round the entire Nigeria. And as a start off point, management decided that it's a good thing to come to the market, because we know the place the people who trade in the market hold in the economy. 'So, we feel that we should bring this message to them, hoping that they will understand what to look out for, what the red flags are, and by the time we are done, the people that perpetuate Ponzi in Nigeria, they will carry their bags and leave, because it will no longer be business as usual. 'The people who fall victims are usually people who are not knowledgeable about how Ponzi schemes work. So, I think that for the most of them, it is lack of knowledge, essentially. ' And of course, we want to believe that economic hardship has a part to play. But more than anything, is lack of knowledge. Because even if you are hard up for cash in the economy, and there is an opportunity for you to lose the small that you have, you won't go there. 'So I think it's because people don't know what to look out for. They don't know that somebody is attempting to collect what is in their hand. That's why they fall victim.'Show trimmed content. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Forbes
01-05-2025
- Business
- Forbes
Nigerian Gov Passes Law Recognizing Bitcoin As A Security
Flag of Nigeria in front of a clear blue sky Last month, President Tinubu signed the Investment and Securities Act (ISA) 2025 into law, officially recognizing Bitcoin and other digital assets as securities. Despite Nigeria consistently ranking within the top nations globally for Bitcoin adoption and P2P volumes, according to Chainalaysis' reports, one thing has remained consistent throughout Bitcoin's existence as an asset in the country: the lack of laws on the books recognizing and governing digital assets such as Bitcoin—until now. This new development marks the first time Nigerian regulators have officially recognized Bitcoin, albeit as a security, which some would consider a misclassification. Nevertheless, this brings much-needed regulatory clarity for the digital assets ecosystem and will usher in a new paradigm for the possibilities, innovation, and investments to thrive in the space. On March 29, the Nigerian government signed into law the Investments and Securities Act (ISA) 2025 as part of its planned rollout of sweeping capital markets reform. The Act repeals the previous 2007 Investments and Securities Act No. 29, which governs the Nigerian Securities and Exchange Commission (SEC), to update the regulatory framework governing capital markets in Nigeria and address current economic realities and long-standing challenges, and will now govern the Nigerian SEC. In a statement, the Nigerian SEC Director-General, Dr. Emomotimi Agama, highlighted the significance of the development: "By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more efficiently, and reposition Nigeria as a competitive destination for local and foreign investments." The revised legal and regulatory framework now classifies digital assets as securities in Nigeria, meaning that the Nigerian SEC will primarily oversee exchanges and businesses operating in the digital assets sector. The new Act introduces several significant changes and updates that give more oversight to the Nigerian SEC and prioritizes transparency, improve investor protection, crack down on Ponzi schemes and fraudulent activities, and aims to align with global standards from bodies such as the International Organization of Securities Commissions (IOSCO)—allowing the Nigerian SEC to maintain its "Signatory A" status under IOSCO's Enhanced Multilateral Memorandum of Understanding (EMMoU). Under ISA 2025, all virtual assets and investment contracts are officially recognized as securities. This means that all Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs), and Digital Asset Exchanges (DAEs) fall under the Nigerian SEC's oversight. The aim is to improve investor protection and prevent fraud and abuse from market players in the emerging digital assets space. Fraudulent investment schemes are now strictly prohibited. The Nigerian SEC can impose fines of at least N20 million (about $12,430), prison sentences of up to 10 years for promoting Ponzi schemes, or both. They also have the authority to access data from Nigerian telecom and internet providers to track illegal activities like market manipulation and insider trading. With Bitcoin's legalization and a more transparent regulatory framework in Nigeria, companies can explore new financial products and services without previous uncertainties. The Act provides market players and investors additional mechanisms and avenues to seek redress and curb fraudulent digital asset activities. For Bitcoin entrepreneurs in Nigeria, the Act is a welcomed change. However, sentiment is split evenly between relief and trepidation from the potential negative consequences introduced by the (mis)classification of Bitcoin as a security. In articulating the seeming antinomy here, Onionsman (as he's popularly known), CEO of the Naira FX and Crypto rates aggregator Monierate, pointed out, "By imposing requirements that favor financial strength, the Act creates significant barriers to entry for less-capitalized builders and service providers." He argues that the natural consequence could be a concentration "among entities and individuals with deep pockets, effectively ending the permissionless innovation that has been a hallmark of the Bitcoin industry." Additionally, Bitcoin's uniqueness compared to other digital assets means it will challenge the Act's blanket classification due to its decentralization and absence of a single issuer. An arduous transition awaits Bitcoin businesses, as they now have a clear path to formalize their operations by seeking the appropriate licenses (when available) from the Nigerian SEC, updating their internal operations accordingly, KYC/AML frameworks, and compliance reporting. Specific dynamics, like high compliance costs and other operational frictions for companies building Bitcoin products and services, will raise barriers for new ventures. As a result, Bitcoin companies will need to navigate the new regulation, hoping for improvements over time. In this light, Heritage Faloudun, CEO of Cashwyre, a Bitcoin remittance app, commented, "We're transitioning from building cautiously to building officially." Adding, 'While this may require internal restructuring, it's a necessary price for long-term sustainability.' For veteran Nigerian Bitcoin founders like Bernard Parah, CEO of the Bitcoin financial services company Bitnob, the Act is a starting point for outreach and further conversation with regulators. In an interview about the recent law, he said, "It's good that there's clearer regulation. Now that this is done, it's easier to work on specific amendments as the industry matures." The growth and success of the Bitcoin space in Nigeria over the next decade will be driven by increased regulatory clarity and ongoing discussions to distinguish Bitcoin from other digital assets. Appropriate regulations that clearly define this distinction will enhance and streamline the ecosystem, helping eliminate fraud and misinformation. Ultimately, this will foster greater innovation and promote economic development within this burgeoning global industry. Heritage put it best when asked about the outlook for Nigerian Bitcoin builders, 'these are necessary growing pains if we're truly committed to transforming how Africans send and receive value globally.' We are in a new age of Bitcoin in Nigeria, as the asset and industry are officially recognized. Disclaimer: Bitnob is a Recursive Capital portfolio company.
Zawya
29-04-2025
- Business
- Zawya
Nigeria: SEC urges co-operation among African markets on development
The Securities and Exchange Commission (SEC) has urged greater cooperation among African markets to strengthen interconnections within the continent and enhance the development of new financial products. The Director General of the SEC, Dr Emomotimi Agama, made the call on Monday during a visit by the SEC Board to the Autorité Marocaine du Marché des Capitaux (AMMC – Moroccan Capital Market Authority) in Rabat. Agama emphasised the need for African nations to collaborate and invest in each other's markets to foster growth, stating: 'We need to cooperate in Africa, invest in each other's market and grow our continent. We want to build collaboration so that as Africans we can have a focus and build a strong interconnection. The time is now for us to look inwards.' He highlighted Morocco's expertise in Collective Investment Schemes (CIS) and the need for Nigerians to leverage its benefits: 'We are aware of your strength in Collective Investment Schemes and we know we can learn a lot from you. The population of Nigeria is huge and we need people to understand the huge benefits in CIS and how they can key into it.' 'We appreciate the strength of the Moroccan economy and structure and we want to see what role the capital market has played in all of this,' he stated. Head of External Relations at SEC Nigeria, Efe Ebelo, said in a statement that Agama emphasised the importance of the capital market as the nerve centre of the economy, highlighting its role in wealth creation and quality of life improvement. According to him: 'The capital market is an enabler to the development of the economy and we believe there is so much to learn from Morocco to help strengthen our own market. We are excited about what the future holds for us and how we can forge a common front.' Agama also noted the benefits of CIS in Morocco and the mutual learning opportunities available: 'We are happy about the progress of CIS in Morocco and we want to learn from you and also tell you about our experience because there is a lot to gain. Our relationship and integration will go a long way in building both markets and make life better for our citizens. We encourage governments to use long-term capital for long-term projects.' He emphasised the capital market's role in financing infrastructure development: 'The capital market is the solution to raising funds for long-term infrastructure development. We see the capital market as a solution provider to move the economy forward. We want to make Africa better and a destination of choice. We want to jointly work with other regulators to achieve it.' Chairperson and CEO of the Moroccan Capital Market Authority, Ms Nezha Hayat, welcomed the collaboration between the two regulators, noting the evolving nature of the capital market: 'Capital market has now diversified so much, but for us everything goes through mutual funds. We think CIS is very important because people put their money in funds that are regulated and are controlled. People have more access through CIS. It is key to encourage the truth of any market.' She underscored the need for market integration and dual listings: 'I believe in an integrated market so cooperation is better. We are interested in dual listing; we will soon be authorizing funds in foreign currency which means the mutual funds can also be invested in foreign countries. We have a special focus on Nigeria, which will be one of the markets where this will happen. We need to deploy initiatives that will focus on developing our continent,' she added. Chairman of the SEC Nigeria Board, Mr Mairiga Katuka, reaffirmed the Commission's interest in learning from other jurisdictions to improve Nigeria's capital market. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
21-04-2025
- Business
- Zawya
Nigeria: SEC to crack down on influencers, bloggers promoting unregistered schemes
The Securities and Exchange Commission (SEC) has warned influencers and bloggers, against promoting unregistered investment schemes. The Commission emphasised that it is working closely with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other relevant government bodies, to investigate and prosecute violators. Director General of the SEC, Dr. Emomotimi Agama, stated that the Investments and Securities Act (ISA) 2025 specifically targets promoters of unregistered schemes, urging celebrities, social media influencers, and bloggers to steer clear of endorsing such ventures to avoid legal consequences. 'The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment. We are therefore using this medium to warn such persons to desist from promoting unregistered entities,' he said. Agama stated that the SEC is intensifying efforts to combat Ponzi schemes following the enactment of the Investments and Securities Act (ISA) 2025, a landmark law signed by President Bola Tinubu. The new legislation explicitly defines Ponzi schemes and introduces stringent sanctions, including a minimum fine of ₦20 million and a 10-year jail term for promoters of such fraudulent schemes. Dr. Agama emphasized the Commission's capacity and readiness to tackle Ponzi schemes, stating, 'SEC is capable, has the capacity, has the knowhow and of course will be able to deal with anyone caught in this mess'. He highlighted that the SEC has dealt with similar schemes before and will continue to do so, leveraging the new powers granted by ISA 2025 to protect investors and develop the market. 'The recent collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion, has underscored the urgency of this crackdown. CBEX promised unrealistic returns, doubling investments within a month, and deceived many with false claims of global affiliations,' he noted. Dr. Agama said, 'We will shut down their operations and the promoters will be made to face the full weight of the law'. He said the ISA 2025 also brings digital assets under the SEC's regulatory umbrella for the first time, recognizing virtual assets as securities. This inclusion, Agama said, means that Virtual Asset Service Providers and Digital Asset Exchanges must register with the SEC and comply with regulations, closing previous legal gaps exploited by fraudulent operators. According to him, 'Education is a key pillar in the SEC's strategy. The Commission has launched podcasts, social media campaigns, and is integrating capital market education into schools and universities. 'We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes'. The SEC also urged Nigerians to verify any investment opportunity with the Commission before committing funds, warning that once it is too good to be true it certainly is not true'. The SEC DG emphasised that the Commission remains committed to protecting investors in line with its twin objectives of investor protection and market development and urged Nigerians to be cautious, consult professionals before investing, and to avoid schemes promising unrealistic returns. 'The SEC has also established departments for monitoring market activities and conducting inspections to detect irregularities early. We have a monitoring department, we also do onsite inspections, once we hear anything we do something. These proactive measures aim to prevent the recurrence of massive frauds like CBEX. 'The Commission is focused on democratizing wealth through a safe and transparent capital market. We are committed to providing a safe investment environment, the capital market helps you to democratize wealth for everybody. The ISA 2025 thus represents a significant step forward in protecting Nigerian investors and fostering a resilient financial market', he added. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
BBC News
15-04-2025
- Business
- BBC News
Ponzi schemes wey don crash for Nigeria in di last 10 years
Di amount of Ponzi schemes for Nigeria now don turn anoda tin, e be like if pesin turn head like dis, anoda tin don suck millions from di pockets of kontri pipo. Just dis weekend pipo start to hala on top di money dem say dem loose inside one digital asset trading platform wey dem dey call CBEX. Dem first suspend withdrawal for di platform bifor users find out say dia account balance dey read zero for di app. Tori be say na ova 1.3 trillion naira ($809,000) CBEX sweep from investors accounts. CBEX investment bin dey promise 100 percent return on investment for investors in one month and dis na why pipo bin rush am. Di mata make one group of angry youths bin storm CBEX office for Oke Ado area of Ibadan, di Oyo State capital, to loot items afta di trading platform crash. Dis dey come even as di SEC say in accordance wit di ISA 2025 wey President Bola Tinubu recently sign, na offence for any entity to operate online forex trading platform or provide related services witout prior registration wit di commission or as di DG of di Securities and Exchange commission, Emomotimi Agama tok am, "if e no dey registered, den e dey illegal". But as e be like say, several ponzi schemes just dey jump out from evriwia, na so e be really or na di perspective wey pipo get. For 2018, Dr Jackson Tamunosaki Jack wey be from di Federal University for Otuoke from di Department for Sociology and Anthropology and Dr Christopher Chimaobi Ibekwe from di Nnamdi Akiwe University Department of Sociology/Anthropology do research wey conclude say "di volume and level of Ponzi schemes for Nigeria and im acceptance na bicos of economic recession for Nigeria." So e fit be say no be just imagination, as di study go on to claim say di level of Pponzi schemes start to plenti afta di economic recession of 2016, so make we torchlight some of di biggest Ponzi schemes wey di kontri don see. Mavrodi Mondial Moneybox (MMM) Mavrodi Mondial Moneybox aka MMM popular for di two years wey e bin dey Nigeria sotay e almost bicom synonymous wit Ponzi schemes for di kontri. Di scheme wey don dey Russia since di 80s enta Nigeria for November 2016. Di Nigeria Electronic Fraud Forum record say kontri pipo lose about 12bn naira ($7million). Dis ponzi style investment promise profit of between 25 per cent to 75 per cent to investors per month and e bin popular well well for Africa. Dem announce di closure of di scheme for 6 April 2018 say na bicos of di death of dia godfather Sergie Marvodi wey start am. XIMA FX XIMA fx bin advertise demselves as foreign exchange service wit return on investment of 15% for 2020. Until around April of di same year wey dem reduce am to 10%. Dem neva post anytin of dia intensive training on foreign exchange since 2020 and dia website currently dey unreachable MBA forex Di Economic and Financial Crimes Commission [EFCC] bin announce say Maxwell Chizi Odum wey be MBA forex CEO dey wanted for alleged $518.3m fraud. MBA Forex dey registered wit Corporate Affairs Commission and di Special Control Unit Against Money Laundering and dem bin don dey operate for four years bifor dem close down for December, 2020. Di Securities and Exchange Commission SEC Nigeria also clarify say MBA Forex no ever dey registered wit dem. Head of Investigation and Enforcement of di Security and Exchange Commission, Port Harcourt Branch, Enebeli Sussy Sulukwe for May 2021 explain say; MBA Forex bin try to register wit dem but dem fail to meet dia registration requirements. And dem dey among di market operators wey SEC list for dia website as one of those wey dey operate illegally. Sulukwe tok For 11 March, 2025, di EFCC release list of 58 illegal ponzi scheme operators for di kontri. Dem include:
