SEC, Police Move Against Investment, Crypto Fraudsters
By Patience Ikpeme
The Securities and Exchange Commission has warned that illegal investment operators and cryptocurrency fraudsters are exploiting public trust by promising unrealistic returns, including claims of 200 per cent profit within 30 days, while operating outside Nigeria’s regulated financial system.
Director General of the SEC, Dr. Emomotimi Agama, raised the concern in Abuja on Wednesday during a meeting with the Inspector General of Police, Kayode Egbetokun, where both institutions agreed to deepen collaboration to combat investment scams, illegal schemes and cryptocurrency-related fraud.
Agama said many of the perpetrators disguise their activities using popular but poorly understood financial concepts to deceive unsuspecting Nigerians, particularly vulnerable groups.
“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,” he said.
According to him, the activities of such operators go beyond financial losses and pose a broader threat to the stability of the country’s financial system. “This is not just a financial crime; it is a social menace that erodes public confidence in our entire financial system,” Agama added.
He said the agreement between the SEC and the Nigeria Police Force was aimed at protecting the savings and financial aspirations of Nigerians by ensuring that fraudsters are identified, investigated and prosecuted promptly.
Agama explained that the SEC, as the regulator of Nigeria’s capital market, is responsible for investor protection, market integrity and transparency through rule-making, licensing of operators and continuous market surveillance. However, he noted that effective enforcement requires strong cooperation with law enforcement agencies.
“This is where our authority, as the SEC, meets its necessary complement: your power, your reach, and your mandate,” he told the police leadership. “The Nigeria Police Force is the primary law enforcement agency with the national presence, the investigative muscle, and the constitutional authority to track, apprehend, and bring these criminals to justice.”
He said scammers often take advantage of the gap between regulatory detection and criminal enforcement, stressing that the proposed partnership was designed to eliminate that weakness. “Currently, there is a gap, a seam between identification and enforcement that these scammers exploit. Today, we aim to close that gap permanently,” Agama said.
As part of the collaboration, he proposed an institutional framework that would include joint intelligence and operational efforts, capacity building, knowledge transfer, improved enforcement processes and a coordinated national public awareness campaign.
The SEC chief advocated the creation of a dedicated joint SEC–NPF team combining market intelligence, forensic accounting expertise and knowledge of complex financial products with police investigative and intelligence capabilities. He said the team would serve as a rapid-response unit to emerging fraud schemes.
Agama also sought the approval of the Inspector General to formalise cooperation with the Cyber Security Unit of the Police through a Memorandum of Understanding to strengthen oversight of online financial activities and improve safety in the digital space.
“Mr. Inspector General, the fight against financial crime is a fight for the soul of our economy. It is a fight for the widow who has lost her savings, the youth lured by fake crypto promises, and the retiree seeking a safe return,” he said. “The SEC cannot win this fight alone. The Police should not have to decipher these complex schemes without specialist support. Together, however, we form an impenetrable shield.”
Agama said the meeting marked a turning point in the protection of investors and sent a strong signal to fraudsters operating both offline and online. “Let us send a clear, unequivocal message to every scammer, from the dusty streets to the dark web: Your time is up. Nigeria’s investors are now under our combined protection,” he added.
In his response, Inspector General of Police Kayode Egbetokun assured the Commission of the full support of the Nigeria Police Force, saying the police were ready to strengthen collaboration in all areas necessary to achieve effective enforcement.
“Your role in the Securities and Exchange Commission is very crucial to the Nigerian economy, and with our supervision and support from the government, we will ensure economic recovery and growth,” Egbetokun said.
He noted that reinforcing the police enforcement unit attached to the SEC would significantly improve the Commission’s ability to tackle market abuses and financial crimes. “If the police unit in SEC is strengthened, it is going to make so much impact in your enforcement drive,” he said, adding that effective enforcement delivers wide-ranging economic benefits.
The Inspector General also congratulated the SEC on the recent attainment of the ₦100 trillion market capitalisation milestone, describing it as a major development for the economy.
“That is a very huge one, and on behalf of the entire police force, I congratulate you on this great achievement,” Egbetokun said. He confirmed approval for collaboration with the Cyber Security Centre of the Nigeria Police Force and expressed support for strengthening the police unit attached to the Commission.
