EFCC, SEC Step Up Fight Against Ponzi Schemes in Nigeria

The Economic and Financial Crimes Commission (EFCC), in partnership with the Securities and Exchange Commission (SEC), has heightened its crackdown on illegal investment platforms proliferating across Nigeria. These joint efforts aim to dismantle a wave of fraudulent schemes—many operating as Ponzi scams—that have been deceiving Nigerians with promises of unrealistically high returns.

According to the EFCC, 58 companies are currently under investigation for running unlicensed financial operations without approval from either the Central Bank of Nigeria (CBN) or the SEC. These firms are believed to be involved in high-risk ventures that violate financial laws and put investor funds at risk. So far, legal proceedings have led to the conviction of five individuals, while another five have entered guilty pleas and await sentencing. Additional cases are pending arraignment.

One high-profile arrest involves radio personality Favour Ekoh of Urban Radio 94.5FM in Enugu, who was taken into custody for allegedly masterminding a ₦700 million Ponzi scheme. Operating under the company name Leverage Index Limited—marketed as “Life Trading”—the platform promised investors a 10 percent monthly return. The scheme reportedly duped over 50 people before it collapsed, leaving investors empty-handed. EFCC agents attempting to arrest Ekoh at the radio station were initially blocked by staff and management, who allegedly locked the gates in an effort to prevent the operation. The standoff ended only after backup was called in. Ekoh, along with the station’s managing director and two security guards, was eventually arrested for obstructing law enforcement.

In response to the surge in fraudulent schemes, both the EFCC and SEC have renewed their warnings to the public, urging Nigerians to avoid unregulated platforms and only invest through entities registered with the CBN or SEC. The agencies reaffirmed their dedication to prosecuting offenders and recovering stolen funds. As part of these efforts, the EFCC is expanding its public education campaigns to help citizens recognize and avoid fraudulent investments, while ongoing investigations into the 58 suspected firms continue.