The Securities and Exchange Commission (SEC) has issued a fresh warning to Nigerians against falling prey to illegal investment schemes, urging the public to report any suspected operations to the commission for investigation and enforcement.
In a notice released Thursday, the SEC highlighted the growing threat posed by Ponzi schemes and unregistered investment platforms, warning that such schemes endanger the stability and credibility of Nigeria’s capital market.
The advisory specifically pointed to the misuse of digital assets as a cover for fraudulent operations. According to the SEC, promoters of these schemes often lure unsuspecting investors with promises of high returns and minimal risk—tactics commonly associated with Ponzi and pyramid schemes.
“The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk,” the notice said.
It cautioned that these schemes often come disguised as cryptocurrency investments, forex trading, or blockchain-based ventures—none of which have received SEC’s mandatory approvals.
“If it sounds too good to be true, it likely is,” the Commission stressed.
The SEC advised investors to always verify the registration status of any investment platform or individual through its official website: https://sec.gov.ng/cmos.
Citing Section 196 (3) of the Investments and Securities Act 2025, the Commission stated that promoting or operating unregistered investment schemes is a criminal offence punishable by a fine of at least N20 million, a 10-year prison sentence, or both.
“We are fully committed to identifying and prosecuting offenders,” the SEC noted, adding that public cooperation is essential in safeguarding the integrity of the investment environment.
The commission called on Nigerians to be vigilant, conduct due diligence, and promptly report suspicious investment offers to ensure a safe and transparent financial market.
