The Economic and Financial Crimes Commission (EFCC), Kaduna Zonal Directorate, has announced the arrest of 28 individuals allegedly involved in a Ponzi scheme in Minna, Niger State.
According to a statement released by the EFCC on Monday, the suspects were apprehended by operatives of the commission and will be arraigned for fraud.
List of Suspects
The arrested individuals include:
Nofisat Opeyemi, Shukurat Muritala, Odunayo Sanni, Mayowa Oyekola, Aishat Olaitan, Edward Hannah, Abioye Fathiah, Joseph Omowunmi, Kareem Ahmed, Arikeusola Afeez, Adiamo Mutholib, Abass Ibrahim, Wasiu Taofeek, Adeniji Damilare, Nurudeen Akinola, Mubarak Yekeen, Adedeji Ayobami, Alani Samuel, Ogundele Yunus, Adekunle Ibrahim, Adewale Azeez, Rufai Faruk, Fawaz Yekeen, Olade Abdullahi, Ahmed Murtala, Adisa Habeebllahi Akorede, Adigun Timilehin, and Abdulfatai Ridwannullah.
EFCC's Allegations
The EFCC disclosed that the arrests followed credible intelligence linking the suspects to fraudulent investment operations under Q-Net Ltd, a company allegedly running a Ponzi scheme from a three-bedroom apartment in Al-Bishiri Estate, Minna.
The suspects were accused of luring victims to invest N1,400,000 for product purchases from Dubai and other foreign countries. Victims were made to believe that Q-Net Ltd was an international company with affiliates in Dubai, India, Indonesia, and Thailand.
They were allegedly coerced into paying between $790 and $850 (N1,462,000) as a registration fee and product purchase costs. The EFCC further stated that some of those arrested were dressed as network marketers and were receiving lectures on Ponzi scheme operations at the time of their arrest.
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Recovered Items & Next Steps
Items recovered from the suspects included Q-Net application forms and other related documents. The EFCC assured that the defendants will be charged to court once investigations are concluded.
Legal Reforms Against Ponzi Schemes
The crackdown on Ponzi schemes follows the recent passage of the Investments and Securities Repeal and Re-enactment Bill, 2024, by the Nigerian Senate in December 2024.
The bill, which was proposed by the Nigerian Securities and Exchange Commission (SEC) under Mr. Emomotimi Agama, aims to clamp down heavily on Ponzi schemes and other fraudulent investment activities.
Key provisions of the bill include:
- A 10-year jail term for convicted Ponzi scheme operators.
- A fine of $12,000 (N20 million) for offenders.
The bill was previously presented to former President Muhammadu Buhari by the Nigerian SEC to make Nigeria's securities market more competitive.
Stakeholders in the financial sector welcomed the bill, stating that it will help reduce fraudulent schemes and protect the public from financial scams.
The bill was passed following the adoption of the report from the Committee on Capital Markets, chaired by Senator Osita Izunaso (APC-Imo). It was sponsored by Senator Bamidele Opeyemi and co-sponsored by Izunaso.
This latest EFCC operation signals the Nigerian government's renewed commitment to tackling financial crimes and protecting citizens from fraudulent investment schemes.
