The Securities and Exchange Commission (SEC) has called on Nigerians to report any suspected illegal investment schemes to the Commission for proper investigation and action.
In a notice issued on Thursday, the SEC cautioned the investing public about the dangers posed by Ponzi schemes and other fraudulent operations, stressing that such activities undermine the growth of Nigeria’s capital market.
The advisory comes in the wake of the recent CBEX saga, which has raised fresh concerns over unregulated and deceptive financial platforms. The Commission highlighted the increasing risks associated with Ponzi schemes, illegal investment operations, and unregistered digital assets platforms.
It warned that many fraudulent entities and individuals continue to lure unsuspecting investors with promises of high returns, often disguising their schemes with the use of digital assets to appear legitimate.
“The public is strongly advised to be cautious of investment opportunities that offer guaranteed or unusually high returns with little or no risk,” the SEC stated.
The Commission also flagged unregistered platforms offering cryptocurrency, forex trading, and blockchain-based investment schemes, noting that such platforms often operate without obtaining SEC approval.
Reiterating its warning, the Commission said: “If it sounds too good to be true, it likely is.”
The SEC urged prospective investors to carry out thorough due diligence and verify the registration status of any company or individual offering investment opportunities through the Commission’s official website.
It further emphasized that Section 196 (3) of the Investments and Securities Act, 2025, prohibits and criminalizes the promotion and operation of unregistered investment schemes. Offenders, upon conviction, risk a fine of not less than N20 million, a prison term of up to 10 years, or both.
The Commission reaffirmed its commitment to identifying and prosecuting violators, urging members of the public to support efforts to protect the integrity of Nigeria’s investment environment by promptly reporting suspected illegal schemes.
Edited by Nzubechukwu Eze.
