A bill sponsored by Mr. Ibrahim Babaginda for the prosecution of Ponzi schemes and pyramid investments has passed second reading at the House of Representatives. 

The Big Picture. 
This bill, if passed into law, would see the Nigerian Security and Exchange Commission (SEC) shut down pyramid schemes businesses and offenders would face 10 years’ imprisonment.

Defending his argument, Mr. Ibrahim Babaginda said that former President Umar Yar’Adua had signed the existing bill into law during his tenure, but the bill cannot account for recent market changes and match global standards.

Also, Mr. Ibrahim said that the bill is seeking to place regulations on financial institutions to protect investors in cases of bankruptcy and netting. The lawmakers favored the bill and it will pass for second hearing.

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