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The Securities and Exchange Commission says it has shut down more than 400 fraudulent investment schemes nationwide, with several suspects currently facing prosecution, as part of efforts to protect investors and strengthen confidence in the financial market.
The disclosure was made by the SEC Executive Commissioner for Operations, Bola Ajomale, during the Nairametrics financial literacy forum tagged “The Money Fair,” held in Lagos on Tuesday.
Ajomale, who represented the SEC Director-General, Dr. Emomotimi Agama, said the commission has stepped up enforcement actions in response to the growing number of unregulated investment platforms operating in the country.
He revealed that over the past three years, the commission had investigated and shut down at least 400 fraudulent schemes, noting a sharp increase in such activities in the past year.
According to him, several individuals linked to the schemes have been arrested and are being prosecuted.
He warned Nigerians to be cautious when investing, stressing that any individual or organisation not registered with the SEC is not authorised to collect funds from the public.
To strengthen its enforcement drive, Ajomale said the commission had introduced initiatives such as the “See It, Snap It” campaign and the “SEC Scam Alert” platform to enable members of the public to report suspicious investment activities promptly.
“Over the last three years we have investigated and shut down at least 400 of these so-called schemes. We saw a tremendous increase in them last year, and a number of those involved have been arrested and prosecuted.
“If the investment product or the operator is not registered with the SEC, they have no business asking you to put your money there,” Ajomale added.
Ajomale added that the commission introduced initiatives such as the “See It, Snap It” campaign and the “SEC Scam Alert” to enable Nigerians to easily report suspicious schemes and help regulators act swiftly before such schemes expand.
The SEC’s actions come amid heightened concerns over investor protection, as fraudulent schemes continue to lure unsuspecting Nigerians with promises of high returns.
Stakeholders at the event underscored the importance of financial literacy in helping individuals make informed investment decisions and avoid falling victim to scams.
Chief Executive Officer of Nairametrics Financial Advocates Limited, Ugodre Obichukwu, said the “Money Fair” initiative was aimed at bridging the knowledge gap in wealth creation and equipping Nigerians with practical financial insights.
He pointed to prevailing economic challenges, including rising prices and exchange rate volatility, as factors increasing the urgency for financial education.
Also speaking, Chairman of FCMB Group Plc, Bolaji Balogun, highlighted the role of innovation and entrepreneurship in driving economic growth and reducing poverty.
Participants at the forum agreed that improved financial literacy remains critical to helping Nigerians identify legitimate investment opportunities and avoid fraudulent schemes, particularly in a challenging economic environment.
