SEC Sounds Alarm on Digital Asset Fraud
…Unveils Measures to Protect Investors
By Patience Ikpeme
Nigeria’s stock market watchdog, the Securities and Exchange Commission (SEC), is worried about more and more online scams involving digital money.
The SEC has warned that these tricks are a big problem for keeping the market fair and can make people lose trust in investing their money.
In a statement released on Thursday, the SEC said its boss, Dr. Emomotimi Agama, spoke about this worry in Abuja. He was at an event for African Union Anti-Corruption Day, which focused on “Understanding Virtual Assets and Investment Fraud.” Dr. Agama explained that corruption still stops Africa from growing its economy, making society better, and attracting businesses.
“Today, as new digital ideas change how money works, we face new problems, especially the rise of online money scams and clever investment tricks that cheat people who aren’t aware,” Dr. Agama said. He added, “These threats hurt the market’s fairness, break trust, and take away money meant to help the country grow.”
The SEC, as a main body that sets rules, is dedicated to doing several key things. These include: teaching investors more about how to spot and avoid scams; making rules stronger to keep up with new dangers in online money and digital investments; and working with other countries to fight corruption and illegal money movement.
Dr. Agama noted that the new Investment and Securities Act (ISA) 2025 has important rules for digital money like cryptocurrencies and other online tokens in Nigeria. Under this new law, the SEC is the main rule-maker for digital money that acts like stocks or investment products.
He also said that all Virtual Asset Service Providers (VASPs)– which include online exchanges, money keepers, and brokers – must get approval from the SEC. They also need to meet standards for their money, how they are run, and how they protect against cyberattacks.
When it comes to telling investors about risks, the SEC boss said that all platforms must warn investors about quick price changes, fraud, and rule dangers. He also warned that there are tough penalties for cheating the market, using secret information to trade, and running Ponzi schemes (where early investors are paid with money from later investors).
“The ISA 2025 gives a full legal framework for regulating digital money. It balances new ideas with protecting investors and keeping money stable,” Dr. Agama said. He added, “The SEC will keep giving out rules to make sure everyone follows them, while also building a safe online money system.”
He also asked everyone – governments, private businesses, community groups, and citizens – to work together to be open, responsible, and honest. He believes that by working together, they can build strong markets that help Africa become richer.
Similarly, Mr. Ola Olukoyede, who leads the Economic and Financial Crimes Commission (EFCC), called online money fraud a fast-growing danger to the country’s economic safety. “Another increasing criminal activity that could even grow faster than money laundering on our continent is online money and investment scams,” Mr. Olukoyede noted, showing how serious this problem is becoming.
