SEC Warns Nigerians Against Social Media Investment Scams
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has told Nigerians to stay away from illegal investment schemes spreading on social media, noting that many are actually “Ponzi” scams designed to steal money.
In a public notice released on Thursday, the Commission said it has seen more unregistered investment plans being pushed on apps like WhatsApp, Instagram, Telegram, Facebook, and TikTok. The regulator found that many of these groups are running prohibited operations and offering financial services without the proper license.
The Commission told citizens to avoid any platform that promises returns that seem too good to be true. “Accordingly, the Commission hereby advises the public to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns,” the notice stated.
The SEC also told people not to follow investment advice from accounts or companies that are not officially recognized. It said that following tips from these unregistered sources can lead to huge money losses and falling victim to fraud.
“Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the Commission,” the regulator added.
The Commission reminded the public that under the Investments and Securities Act 2025, only companies registered with the SEC have the legal right to ask for money from the public or give investment advice in the Nigerian market.
To stay safe, the SEC urged everyone to check if a company or app is real before giving them any money. It told investors to use the official SEC Fintech Registered Operators Portal and the CMOs Portal to verify any business.
The regulator noted that checking these portals first is the best way to make sure an investment is legal and safe.
