The House of Representatives has passed a bill for the second reading, recommending a 10-year prison sentence for operators of Ponzi and pyramid schemes as well as other forms of fraudulent investments. The bill which was proposed by Chairman of the House Committee on Capital Market, Babangida Ibrahim, seeks to protect the integrity Nigerian Capital Market. Babangida Ibrahim noted that current trends in capital markets regulation, over 14 years after, have made it necessary to make major improvements to the Act so as to align the Nigerian market with international standards.
The legislation is titled, ‘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 Nigerian Capital Market as well as Regulation of the Market to Ensure Capital Formation, the Protection of the Market to Ensure Capital Formation, the Protection of Investors, Maintain Fair, Efficient and Transparent Market and Reduction of Systematic Risk; and for Related Matters.'
The lawmaker stated that the bill prohibits Ponzi/pyramid schemes as well as other illegal investment schemes and prescribes a jail term of not less than 10 years for their promoters.
It would be recalled that back in 2017, the Mavrodi Mundial Moneybox (MMM), the Russian-founded Ponzi scheme which was the rave of the moment at the time wrecked the lives of so many Nigerians after it crashed. Ever since there has been an array of several others that have left many in huge debts.