The Senate has concluded plans to formally unveil the Investment and Securities (Repeal and Re-Enactment) Act, 2024 (SB.128), recently signed into law by President Bola Ahmed Tinubu, as part of broader efforts to tighten financial regulations and protect Nigerian investors.
Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, who sponsored the landmark legislation, disclosed this on Friday in Abuja while presenting his two-year stewardship as the representative of Imo West Senatorial District.
Izunaso explained that the new law was a direct response to the alarming rise in Ponzi schemes and fraudulent investment platforms that have defrauded millions of Nigerians. He noted that the Act, backed by regulatory agencies and stakeholders, significantly enhances the enforcement powers of the Securities and Exchange Commission (SEC) and improves transparency across the capital market.
One of the key provisions of the law criminalises the operation, promotion, and participation in Ponzi schemes, with penalties of up to 20 years imprisonment. It also empowers regulators and law enforcement agencies to proactively dismantle fraudulent networks and, where possible, recover and return assets to victims.
“The Investment and Securities Act is now the omnibus law governing everything about capital market operations and investments in Nigeria,” Izunaso said. “It is through this law that cryptocurrency has now been legalised and regulated by SEC. Digital assets have officially become recognised investment instruments in our country.”
He lamented that despite the importance of the new legislation, many Nigerians remain unaware of its provisions. “We plan to unveil the Act publicly and intensify awareness to protect innocent citizens from falling prey to scams,” he said.
Over the years, Ponzi schemes have caused significant financial losses in Nigeria. Investigations show that:
- CBEX (2024–2025) defrauded investors of about ₦1.3 trillion, with some estimates reaching ₦1.5 trillion.
- MBA Forex (2018–2021) resulted in ₦213 billion in investor losses.
- Racksterli (2019–2022) accounted for over ₦147 billion in losses.
- MMM Nigeria (2015–2016) left over 3 million Nigerians with losses totaling about ₦18 billion.
Senator Izunaso expressed confidence that the new legislation would mark a turning point, offering Nigerian investors stronger legal protections and helping to restore trust in the financial system.
The Senator also highlighted his legislative contributions, including the sponsorship of 12 impactful bills and over 20 motions within two years. These include the Discrimination Against Persons with Disabilities (Prohibition) Act (Repeal and Re-enactment) Bill 2023, Agricultural Research Council Act Amendment Bill 2023, and Child Rights Act Amendment Bill 2024.
Other notable bills include three separate constitutional amendment bills, among them the proposal for the creation of ANIM State from parts of Imo and Anambra States. According to him, the statehood bill—named from a blend of “Anambra” and “Imo”—has passed second reading and is currently under review by the Senate Committee on Constitutional Review.
Additional legislation sponsored by Izunaso covers creative industry development, public infrastructure maintenance, amendments to the Cabotage Act, the NDDC Act, and the Federal College of Education Act.
He concluded by reaffirming the role of the capital market in driving Nigeria’s ambition of attaining a $1 trillion economy, stressing that “without a vibrant capital market, that goal is unattainable.”
Nzubechukwu Eze
