Ponzi Schemes On The Rise! SEC Urges Nigerians To Beware Of Fake Online Investments

The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has warned Nigerians to be cautious of online platforms that promise unrealistic financial returns.

Speaking on Channels Television’s Business Morning on Tuesday, Agama emphasized that registration with the SEC is the only reliable proof of legitimacy for any investment scheme.

According to him, many fraudulent operators continue to lure unsuspecting Nigerians with outrageous profit offers. He revealed that the Commission has already issued over 85 public advisories against such illegal investment firms.

“If it is too good to be true, then it is not true. Nigerians must always confirm whether an investment company is licensed by the SEC, not just registered with the Corporate Affairs Commission. When people promise what is ordinarily impossible, that is fraud. Nigerians must ask questions and verify with us,” Agama stressed.

He reminded investors that Section 3(a) of the Investment and Securities Act 2025 gives SEC the sole mandate to regulate all businesses in Nigeria’s capital market.

Agama also urged Nigerians to verify the status of any investment firm through SEC offices in Abuja, Lagos, Kano, and Port Harcourt, or via the Commission’s soon-to-be-launched digital verification platforms.

This caution follows months after the Economic and Financial Crimes Commission (EFCC) released a list of 58 unregistered Ponzi scheme operators, including Wales Kingdom Capital, MBA Trading & Capital Investment Limited, Ovaioza Farm Produce Storage Limited, and Chinmark Homes. While some of these firms’ operators have been convicted, others are still undergoing trial.

Reiterating SEC’s investor-protection mandate, Agama advised Nigerians to always prioritize due diligence:

“The SEC is here to protect investors, but Nigerians must play their part. Before you invest, verify. If it is not licensed by us, don’t touch it.”