The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, announced that the commission has secured the conviction of 12 individuals for running unlicensed pyramid businesses, also known as Ponzi schemes, across Nigeria. Olukoyede made the disclosure during a workshop organised by the Securities and Exchange Commission (SEC) on the theme, ‘Repositioning the Nigerian Capital Market for National Economic Transformation Through Alternative Dispute Resolution.’
Tackling Fraudulent Investment Schemes
The EFCC Chairman highlighted that the agency is committed to upholding the integrity of Nigeria’s capital markets. Olukoyede remarked, “We will not condone any actions that undermine investor confidence or jeopardize fairness within the nation’s financial system.” His statement underscores the commission’s ongoing efforts to combat fraudulent schemes that undermine the security of investors.
Additionally, Olukoyede disclosed that 48 other individuals are currently facing legal proceedings in connection with unlicensed pyramid businesses. This latest conviction follows the EFCC’s charge of 58 Ponzi scheme operators in March 2025, marking a clear signal of the agency’s commitment to tackling financial fraud within the country.
A Growing Concern for Investors
Ponzi schemes, which promise high returns with little to no risk, have increasingly been a concern for investors in Nigeria. These illegal schemes operate by paying returns to earlier investors using the capital of newer participants, rather than generating legitimate profits. This has led to the loss of millions of naira for unsuspecting investors.
The EFCC’s continued crackdown on such fraudulent practices reflects the agency’s broader strategy to protect investors and ensure transparency and accountability in Nigeria’s financial sectors.
Increased Legal Scrutiny on Financial Fraud
The EFCC’s efforts come amidst heightened public awareness of financial fraud and the agency’s intensified pursuit of operators involved in illegal financial activities. The commission is also focusing on strengthening the regulatory framework for capital market operations, a critical step in fostering an environment conducive to legitimate investment and economic growth.
In a related development, Olukoyede’s remarks signal that the EFCC is actively collaborating with other regulatory bodies to safeguard Nigeria’s financial ecosystem and restore confidence among local and international investors.
Recent Legal Actions and Developments
The EFCC’s recent success in securing these convictions highlights its growing role in combatting financial crimes. Previous legal actions have also targeted social media influencers and other individuals accused of financial misconduct. For example, in a recent case, social media influencers were convicted for their involvement in Naira abuse, while other cases have included money laundering and cybercrimes.
As the EFCC continues to increase its vigilance over pyramid schemes and other fraudulent investment activities, it remains committed to ensuring the long-term stability of the Nigerian financial sector.
