SEC Issues Stern Warning to Influencers Over Unregistered Investment Schemes
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has put influencers and bloggers on notice, cautioning them against promoting investment schemes that have not been duly registered.
In a statement released on Sunday, the Commission revealed its active collaboration with various law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC) and the Nigerian Police Force, alongside other relevant government bodies.
This joint effort the. SEC said aims to investigate and bring to justice individuals who violate investment regulations.
Dr. Emomotimi Agama, the Director General of the SEC, pointed out that the recently enacted Investments and Securities Act (ISA) 2025 specifically targets those who promote unregistered investment ventures. He strongly advised celebrities, social media influencers, and bloggers to refrain from endorsing such schemes to avoid facing legal repercussions.
“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment. We are therefore using this medium to warn such persons to desist from promoting unregistered entities,” Dr. Agama stated.
The SEC Director General pledged the Commission’s dedication to safeguarding investors, aligning with its dual objectives of investor protection and market development. He urged Nigerians to exercise caution, seek advice from professionals before making any investment decisions, and to be wary of schemes that promise returns that appear too good to be true.
“The SEC has also established departments for monitoring market activities and conducting inspections to detect irregularities early. We have a monitoring department, we also do onsite inspections, once we hear anything we do something. These proactive measures aim to prevent the recurrence of massive frauds like CBEX,” Dr. Agama explained.
He further noted that the SEC is intensifying its efforts to combat Ponzi schemes following the passage of the Investments and Securities Act (ISA) 2025, a significant piece of legislation signed into law by President Bola Ahmed Tinubu. This new law provides a clear definition of Ponzi schemes and introduces stringent penalties, including a minimum fine of N20 million and a potential 10-year jail term for those who promote such fraudulent operations.
Dr. Agama assured of the Commission’s capability and readiness to tackle Ponzi schemes, stating, “SEC is capable, has the capacity, has the knowhow and of course will be able to deal with anyone caught in this mess.” He mentioned that the SEC has addressed similar schemes in the past and will continue to do so, utilizing the expanded powers granted by ISA 2025 to protect investors and foster market growth.
The recent collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion, has underscored the critical need for this intensified crackdown. CBEX had lured investors with promises of unrealistic returns, such as doubling investments within a month, and deceived many with fabricated claims of international affiliations.
“We will shut down their operations and the promoters will be made to face the full weight of the law,” Dr. Agama declared.
He also pointed out that the ISA 2025 for the first time brings digital assets under the SEC’s regulatory purview, recognizing virtual assets as securities. This inclusion means that Virtual Asset Service Providers and Digital Asset Exchanges are now required to register with the SEC and adhere to its regulations, effectively closing loopholes that fraudulent operators previously exploited.
According to Dr. Agama, “Education is a key pillar in the SEC’s strategy. The Commission has launched podcasts, social media campaigns, and is integrating capital market education into schools and universities.”
“We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” he added.
The SEC also advised Nigerians to verify the legitimacy of any investment opportunity with the Commission before committing their funds, cautioning that if an investment opportunity seems too good to be true, it likely is.
“The Commission is focused on democratizing wealth through a safe and transparent capital market. We are committed to providing a safe investment environment, the capital market helps you to democratize wealth for everybody. The ISA 2025 thus represents a significant step forward in protecting Nigerian investors and fostering a resilient financial market,” Dr. Agama concluded.
