SEC Calls on Nigerians to Report Suspicious Investment Schemes
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has issued a strong appeal to Nigerians, urging them to report any investment scheme that appears to be illegal to the commission for thorough investigation and appropriate action.
In a public notice released on Thursday, the Commission cautioned the investing public about the significant danger that Ponzi investment schemes pose to the development of the capital market.
Through its latest advisory, the SEC alerted the public to the increasing threats and risks associated with Ponzi schemes, unauthorized investment operations, and unregistered digital assets platforms.
The Commission explained that fraudulent organizations and individuals are persistently taking advantage of unwary investors by making deceptive promises of substantial returns, frequently using the appeal of digital assets to create a false sense of legitimacy.
“The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk,” the SEC stated.
“These include unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes, without subjecting themselves to the prescribed processes for obtaining the prior approval of the SEC,” the notice continued.
The SEC reiterated its standing advice, stating, “If it sounds too good to be true, it likely is.”
The commission urged potential investors to conduct comprehensive due diligence before committing their funds and to verify the registration status of any company or individual offering investments through the SEC’s official website: [https://sec.gov.ng/cmos](https://sec.gov.ng/cmos).
The Commission drew attention to Section 196 (3) of the Investments and Securities Act, 2025, which criminalizes the promotion and operation of prohibited or unregistered schemes.
“This violation is punishable upon conviction by a fine of not less than N20m or a prison term of 10 years or both,” the Commission warned.
The SEC affirmed its unwavering commitment to identifying and prosecuting offenders to the fullest extent of the law.
“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 notice concluded.
