The Securities and Exchange Commission has raised concerns over the growing threats posed by Ponzi schemes and other illegal investment platforms, warning that such activities endanger the growth and stability of Nigeria’s capital market.
In a notice issued to the investing public on Thursday, the commission advised Nigerians to report any suspected illegal investment operations to the SEC for prompt investigation and enforcement action.
The commission specifically cautioned against fraudulent investment opportunities that promise guaranteed or unusually high returns with little or no risk. It noted that such schemes, often disguised under the guise of cryptocurrency investments, forex trading, or blockchain-based platforms, frequently operate without registration or approval from the SEC.
“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 read.
The SEC reiterated that many of these schemes exploit digital asset trends to appear legitimate and attract unsuspecting investors. It stated that such unregistered platforms are in violation of the Investments and Securities Act, 2025, which criminalises the operation and promotion of prohibited or unregistered investment schemes.
According to the SEC, any individual or company found guilty under Section 196(3) of the Act risks a penalty of not less than N20m or imprisonment for a term of 10 years, or both.
The commission encouraged potential investors to verify the registration status of companies or promoters through its official website before committing funds.
“The SEC is fully committed to identifying and prosecuting offenders to the full extent of the law,” the statement added.
It also urged Nigerians to partner with the Commission by promptly reporting any suspicious or illegal investment operations to help protect the integrity of the capital market.
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.
