Report suspected Illegal investment schemes to us — SEC
The Securities and Exchange Commission (SEC) has called on Nigerians to report any suspected illegal investment schemes, reaffirming its commitment to investigating and prosecuting fraudulent operations that threaten the integrity of the capital market.
In a public notice issued on Thursday, the commission raised concerns over the increasing prevalence of Ponzi schemes and other unregulated investment platforms, stressing that such operations present a serious threat to the health of Nigeria’s financial system.
The SEC cautioned investors against falling for schemes that promise guaranteed or unusually high returns with little or no associated risk. It specifically pointed to the growing use of digital assets, cryptocurrencies, and forex trading platforms by unregistered operators to lure unsuspecting members of the public.
“These platforms often operate without the required approvals and registration from the Commission,” the statement read. “Members of the public are strongly advised to exercise caution when presented with investment opportunities that appear too good to be true.”
The commission noted that some of these schemes disguise themselves using complex digital jargon and the allure of modern financial technologies to appear legitimate, but their promises are frequently based on deceit.
The SEC urged investors to take a proactive approach by conducting due diligence and verifying the registration status of investment companies or promoters through its official website: https://sec.gov.ng/cmos.
It also referenced Section 196(3) of the Investments and Securities Act, 2025, which makes the promotion or operation of illegal and unregistered investment schemes a criminal offence.
According to the Act, violators, upon conviction, are liable to a minimum fine of ¦ 20 million, a prison sentence of up to 10 years, or both.
The commission assured the public that it is committed to protecting investors and maintaining market confidence.
“We remain vigilant and determined to pursue legal action against all offenders who violate the provisions of the Act,” it stated.
It concluded by encouraging Nigerians to partner with the SEC in preserving the sanctity of the investment landscape by promptly reporting any suspected fraudulent schemes.
“Together, we can uphold the credibility of Nigeria’s capital market by exposing illicit operators and ensuring that only legitimate businesses are allowed to thrive,” the notice said.
