The Securities and Exchange Commission (SEC) has formally engaged the Nigeria Police Force (NPF) in a coordinated nationwide effort in a bid to combat Ponzi schemes, illegal investment operations and cryptocurrency-related fraud.
The collaboration was unveiled in Abuja on Wednesday during a strategic meeting. It was between the SEC Director-General, Dr. Emomotimi Agama, and the Inspector-General of Police (IGP), Kayode Egbetokun.
The development was disclosed in a statement issued by the capital market regulator on Wednesday. This marks a significant escalation in the SEC’s enforcement strategy against investment scams operating outside Nigeria’s formal capital market.
According to the SEC, the partnership is aimed at closing persistent enforcement gaps that allow fraudulent operators to evade prosecution. Furthermore, it seeks to restore public confidence in the country’s financial system.
Dr. Agama said the Commission is seeking to establish a joint task force and deepen cyber-security collaboration with the police. This would help to protect investors and bring perpetrators to justice.
He noted that while the SEC has the statutory mandate to identify regulatory breaches and illegal market activities, effective prosecution requires more. Specifically, they need the investigative authority, arrest powers and nationwide reach of the Nigeria Police Force.
“It is one thing to intensify surveillance and oversight, but another to bring suspects to book,” Agama said.
According to him, Ponzi scheme operators and illegal digital asset promoters have continued to prey on vulnerable Nigerians. They offer so-called “miraculous returns” of up to 200 per cent within weeks. Often, they disguise fraud as cryptocurrency, foreign exchange or other sophisticated investment products.
“These schemes operate in the shadows, exploiting trust and financial desperation. They leave behind shattered lives, depleted pensions and broken confidence in the financial system,” he said, describing the menace as both a financial crime and a broader social threat.
Proposal for joint task force, cyber collaboration
To address what he described as a “critical seam” exploited by fraudsters, the SEC Director-General proposed an institutionalised partnership. The partnership would be built around joint intelligence sharing, coordinated enforcement operations, capacity building and nationwide investor education.
Central to the proposal is the creation of a dedicated SEC–NPF joint task force. This team would combine capital market intelligence, forensic accounting expertise and police investigative capabilities. It would act as a rapid-response unit against emerging fraud schemes.
Agama also sought the IGP’s approval for a Memorandum of Understanding between the SEC and the Police Cyber Security Unit. The goal is to strengthen oversight of digital platforms increasingly used to perpetrate investment scams.
“The fight against financial crime is a fight for the soul of our economy. Together, we can form an impenetrable shield around Nigerian investors,” he said.
Police pledge full backing
In his response, IGP Egbetokun assured the Commission of the Nigeria Police Force’s full commitment to the partnership. He stated that enhanced collaboration would significantly strengthen enforcement against financial crimes.
He said reinforcing the police enforcement unit attached to the SEC would improve the regulator’s capacity to curb illegal capital market activities. This would have positive spillover effects for the broader economy.
Egbetokun also commended the SEC for the recent milestone of surpassing N100 trillion in market capitalisation. He described it as a strong signal of economic growth and investor confidence.
On cyber enforcement, the police chief formally approved collaboration between the SEC and the NPF Cyber Security Centre. This signals a tougher stance against online investment fraud and digital Ponzi schemes.
The partnership is expected to intensify nationwide crackdowns on illegal investment operations. Moreover, it will send a clear warning to fraudsters that regulatory and law-enforcement agencies are now working in close coordination.
