Nigerian SEC Joins Forces With Police To Crush Crypto Ponzi Schemes – Here’s What’s Changing

Regulators are finally getting serious. The Nigerian Securities and Exchange Commission (SEC) just announced a formal partnership with the national police force. Their target? The rampant crypto Ponzi schemes fleecing retail investors across the country.

The New Enforcement Hammer

This isn't a vague memorandum of understanding. It's a direct operational alliance. Expect joint task forces, shared intelligence platforms, and coordinated raids. The message is clear: if you're running a fraudulent crypto operation in Nigeria, you now have two major agencies hunting you, not one.

Why The Crackdown Matters

For the legitimate crypto ecosystem, this is a net positive. Bad actors poison the well, scaring away capital and inviting draconian, blanket regulations. By surgically targeting fraud, the SEC aims to protect investors while allowing compliant innovation to breathe. It's a delicate balance—one few regulators have managed to strike.

The Finance Jab

Of course, watching regulators chase down Ponzi schemes is a bit like watching a gardener meticulously weed one flowerbed while the rest of the lawn is on fire with hyperinflation and currency devaluation. Priorities, right?

The Bottom Line

This partnership signals a maturation of Nigeria's approach. Instead of outright bans or passive warnings, they're deploying focused enforcement. It's a high-stakes experiment. Get it right, and you foster a safer, more trustworthy digital asset market. Get it wrong, and you stifle the very innovation that could offer financial salvation. The watch begins now.

Nigerian SEC Looks To Improve Crypto Investors’ Protection

According to local media Voice of Nigeria, the SEC is ramping up efforts aimed at investor protection and transparent market operations in the crypto ecosystem. In a recent meeting with the NPF, the Commission’s Director-General (DG), Dr. Emomotimi Agama, communicated to the Inspector General of Police (IGP), Kayode Egbetokun, concerns over malicious actors in the financial markets who exploit investors’ trust for personal gains. 

Dr. Agama said:

They cloak their deceit in the glamorous but misunderstood language of cryptocurrency and forex trading. They target the vulnerable, the optimistic, and the simply unsuspecting, leaving behind a trail of shattered lives, depleted pensions, and broken trust. This is not just a financial crime; it is a social menace that erodes public confidence in our entire financial system.

Currently, there is a gap, a seam between identification and enforcement that these scammers exploit. Today, we aim to close that gap permanently.

In particular, the SEC DG is proposing the formation of a specialized SEC-NPF team with members who bring understanding of the financial principles and operations and the tactical intelligence to curb these investment frauds and protect the Nigerian cyberspace. The IGP approved the collaboration request while also stating a strong commitment to help the SEC achieve its aims.

Crypto Fraud In Nigeria

Notably, Nigerians have been victims of several cryptocurrency investment scams in the past few years. The most prominent of these is the Crypto Bridge Exchange (CBEX) platform, which crashed in April 2025, losing over N1.3 trillion ($916 million) in user funds. 

The Nigerian SEC is strongly committed to reducing such menace as shown by the recent collaboration with the NPF alongside other measures such as a revised minimum capital requirements for VASPs and a published list of all identified fraudulent crypto and financial investment businesses. 

Notably, Nigeria remains one of the fastest-growing crypto hubs globally. According to data from TripleA, approximately 10.34% of Nigeria’s population, i.e., 22 million people, hold one digital asset or the other, therefore indicating the need for an effective regulatory oversight and protection system.