The Senate, in a significant step towards tightening financial regulations and safeguarding investors, has concluded plans to unveil details of the Investment and Security (Repeal and Re-Enactment) Bill 2024 (SB. 128) that was recently assented to by President Bola Tinubu.
The Chairman, Senate Committee on Capital Market, Senator Ostia Izunaso, who sponsored the landmark Bill, disclosed this to journalists on Friday in Abuja.
He was giving his account of stewardship in the last two years as the representative of Imo West Senatorial District at the red chamber where he had sponsored 12 other impactful bills and moved over 20 motions in the last 24 months.
He explained that the Act among others, aimed squarely at combating the proliferation of Ponzi schemes and fraudulent investment operations across the country.
The Act, he added, had received strong backing from regulatory authorities and market stakeholders.
He said it had also been structured to strengthen the enforcement capabilities of the Securities and Exchange Commission (SEC) while enhancing transparency in the capital market.
Izunaso noted that the Act introduces several key provisions designed to protect Nigerian investors, especially in the digital space but lamented that most Nigerians are still ignorant of the details of the legislation.
He said the Act has made it illegal to operate, promote, or participate in Ponzi schemes and empowers law enforcement agencies and regulators to prosecute offenders, dismantle fraudulent operations early, and in some cases, recover and return assets to victims.
Investigations revealed that Nigerians had suffered significant financial losses due to Ponzi schemes over the years, with estimates indicating that the total amount lost exceeds N2 trillion.
For instance, under CBEX (2024–2025), investors lost approximately N1.3 trillion but some experts suggest the figure could be as high as N1.5 trillion.
Similarly, under MBA Forex (2018–2021), investors reportedly lost about N213 billion while those who participated in the Racksterli (2019–2022), reportedly lost over N147 billion.
Investors numbering over three million Nigerians who participated in the MMM Nigeria (2015–2016) were said to have collectively lost approximately N18 billion when it collapsed in December 2016.
The figure underscored the scale of the problem and the significant impact on individuals’ financial well-being and the threat to the nation’s economy.
Izunaso however assured Nigerians that the unfortunate development would soon be a thing of the past as his committee would create necessary awareness to save innocent investors.
He said, “We are planning to unveil the Act to the public, because there are so many aspects of the law that people don’t know about.
“That is one aspect of my various achievements in the last two years because if you are talking about economy, you only have money market and capital market. Money market headed by the CBN and the capital market.
“The Investment and Securities Bill which was sponsored by me and assented to by Mr. President to become an Act, is now the omnibus law governing everything about the capital market and investment.
“It is through that law now that if you are caught doing Ponzi, you will be jailed for 20 years.
“It is through that law that cryptocurrency has been legalised, because SEC can now regulate crypto. In fact, digital assets have now become part of the instrument in our country. It wasn’t there before.
“So that is an Act that has been able to address at least four of President Bola Tinubu’s eight-point agenda. So you can’t talk about $1 trillion economy without a vibrant capital market. Where are you going to get the money from? It can only come through capital market.”
The Senator said he had also championed the bill seeking the creation of ANIM State from the current Imo and Anambra states so that the South-east geopolitical zone could also have six states like other zones in the country.
He said, “So that’s why I’m proposing the ANIM State, which has passed through second reading in the Senate. It is now before the Consumer Review Committee. ANIM state is Anambra, Imo.
“That A-N is Anambra while I-M is Imo. So it is basically my territorial district plus some other areas in Anambra state that have agreed to join.”
Other bills sponsored by the Senator were Discrimination against Persons with Disabilities (Prohibition) Act (Repeal and Re-enactment) Bill 2023; Agricultural Research Council Act (Amendment) Bill 2023, and the Child Rights Act (Amendment) Bill 2024 (SB. 339).
They also included the Constitution (Alteration) Bill 2024 (SB. 469); Constitution (Alteration) Bill 2024 (SB. 577); Creative Industry Development Trust Fund Bill 2024 (SB. 579); and the Constitution (Alteration) Bill 2024 (SB. 580) for the creation of ANIM State.
The Senator also sponsored the Public Infrastructure Maintenance (Establishment) Bill 2024 (SB. 619); Federal College of Education Act (Amendment) Bill 2024 (SB. 678); A Bill for An Act To Amend The Coastal And Inland Shipping (Cabotage) Act, 2003; and A Bill for An Act To Amend The Niger Delta Development Commission (NDDC) Act 2000.
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