SEC warns Nigerians against fake investment platforms, ponzi schemes

 

The Director General of the Securities and Exchange Commission, Emomotimi Agama, has cautioned Nigerians to beware of online platforms promising unrealistic financial returns.

Speaking on Channels Television’s Business Morning on Tuesday, Agama stressed that registration with the SEC is the key marker of legitimacy for any investment scheme.

“If it is too good to be true, then it is not true. Nigerians must always verify whether an investment firm is licensed by the SEC, not just registered with the Corporate Affairs Commission,” he warned.

The SEC DG said many fraudulent schemes lure victims with promises of outrageous profits, noting that the Commission has issued more than 85 advisories against such illegal operators.

Agama also cited Section 3(a) of the Investment and Securities Act 2025, which empowers the SEC to regulate businesses in Nigeria’s capital market. He urged Nigerians to contact the Commission’s offices in Abuja, Lagos, Kano, and Port Harcourt—or use its upcoming digital platforms—to confirm the status of investment firms.

“When people promise what is ordinarily impossible, that is fraud. Nigerians must ask questions and verify with us,” he said.

His warning follows a March alert by the Economic and Financial Crimes Commission, which named 58 unregistered Ponzi scheme operators, including Wales Kingdom Capital, MBA Trading & Capital Investment Limited, Ovaioza Farm Produce Storage Limited, and Chinmark Homes, among others.

The EFCC said while some have been convicted or pleaded guilty, many others are still facing trial.

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