The Securities and Exchange Commission (SEC) has urged Nigerians to promptly report any suspected fraudulent investment schemes for investigation and necessary action.
In a public advisory released on Thursday, April 24, the commission warned that Ponzi investment operations pose serious risks to the growth and stability of the country’s capital market.
The SEC noted an increasing number of threats linked to Ponzi schemes, illegal investment ventures, and unlicensed digital asset platforms operating without regulatory oversight.
According to the notice, unscrupulous individuals and organisations continue to deceive innocent investors with enticing but false promises of massive returns, often using digital assets to create a misleading appearance of legitimacy.
The statement read, “The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk.”
The commission specifically cautioned against unregulated investment channels that claim to offer cryptocurrency trading, forex investments, or blockchain-based opportunities without adhering to the SEC’s approval procedures.
It added, “The SEC reiterates in this regard that ‘If it sounds too good to be true, it likely is.”
As part of its guidance, the SEC advised Nigerians to thoroughly verify any investment opportunity and check the registration status of individuals or companies offering such deals through its official website: https://sec.gov.ng/cmos.
The commission reminded the public that promoting or operating unauthorised schemes is illegal under Section 196 (3) of the Investments and Securities Act, 2025.
In its commitment to enforcing the law, the SEC warned that offenders face a minimum fine of ₦20 million, a possible 10-year prison term, or both penalties.
“We encourage the public to partner with the SEC to safeguard the integrity of the investment environment in Nigeria by promptly reporting suspected illegal investment schemes to the SEC,” the statement concluded.
