The Securities and Exchange Commission has warned traders against investing in Ponzi schemes, urging them to verify any investment opportunity with the commission before committing their funds.
Speaking during a sensitisation campaign in Abuja recently, the Director-General of SEC, Emomotimi Agama, said the initiative was part of the commission’s ongoing efforts to protect Nigerians from fraudulent investment platforms.
According to him, Nigerians have collectively lost over $1.3tn to the CBEX Ponzi scheme, stressing the need for greater awareness and caution.
“It is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC,” Agama stated.
He explained that many people often fall victim because they are not adequately informed, noting that sitting in offices and expecting the public to seek out information is no longer effective. “We needed to come out to let them know the dangers of a Ponzi scheme,” he said.
Agama warned that those found promoting Ponzi schemes would face heavy penalties, including a N20m fine and up to 10 years imprisonment, in line with the recently signed Investment and Securities Act 2025.
“We will not stop here. We will go to every market, every nook and cranny of this country. We will visit churches, mosques, hospitals, and even the Navy. We want everyone to hear this message,” he added.
Also speaking, the Executive Commissioner of Legal and Enforcement at SEC, Frana Chukwuogor, urged traders to be wary of schemes that promise unusually high returns, describing them as scams designed to deceive unsuspecting Nigerians.
“Ponzi schemes are illegal investment behaviours that build on nothing. We need to enlighten Nigerians, especially women, who can help spread the message within their communities,” she said.
During the campaign, several traders at Wuse Market recounted their experiences with the illegal CBEX platform.
Chijioke Nnodim, a trader, said many people lost huge sums due to greed. “Some paid N20 million, some N15 million, and one woman lost N10 million. Nigerians should learn to investigate before investing,” he said.
Another trader, Abraham Onojie, narrated how he initially gained returns on small investments, only to lose N7 million when the operators disappeared.
“Nigerians should be careful of the kind of people that come to them to say you should invest. Don’t listen to them to avoid what happened to us,” he warned.
The SEC emphasised that it would continue its public education efforts across markets, religious centres, and communities to curb the spread of Ponzi schemes and illegal investment activities.
The PUNCH reported that the Securities and Exchange Commission has issued a fresh warning to Nigerians, declaring that all investment and digital asset platforms not registered with the commission are operating illegally.
