Bill to Prohibit Ponzi Schemes passes 2nd Reading

A bill that prescribes 10years imprisonment for Ponzi schemers has passed the second reading in the Nigerian House of Representatives.

The bill which is to be the amended version of the Nigerian capital market, the investments and securities act 2007 is hereby prohibiting Ponzi/Pyramid schemes as well as other illegal investment schemes and prescribes a jail term of not less than 10 years for promoters of such schemes.

Nigeria House of Representative
photo: House of Representatives, Federal Republic of Nigeria

Babangida Ibrahim representing Malumfashi/Kafurwho constituency, Katsina state who sponsored the bill said  that “current trends in capital market regulation have made it imperative to make major improvements to the Act to align our market with international standards.”

In addition, the bill is seeking to empower the Security and Exchange Commission to shut down such prohibited investment schemes.

Dolupo Balogun

Written by BoomRadioNG