Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has issued a stern warning to celebrities, social media influencers, and bloggers over the promotion of unregistered and fraudulent investment schemes.
The Commission has also reminded the public that the recently signed Investments and Securities Act (ISA) 2025 prescribes stiff penalties for violations, including jail terms and heavy fines.
In a statement yesterday, the Commission disclosed that it is collaborating with law enforcement agencies such as the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other relevant government institutions to investigate and prosecute individuals and platforms involved in unlawful investment promotions.
Director General of the SEC, Dr. Emomotimi Agama, noted that the ISA 2025 contains specific provisions targeting promoters of fraudulent and unregistered investment schemes.
According to him, those who exploit their platforms to promote such ventures now face serious legal risks. “The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment,” he said, urging them to desist immediately.
The Commission, he explained, remains focused on its core responsibilities of investor protection and capital market development. He advised Nigerians to exercise caution when approached with investment offers, particularly those promising unrealistically high returns. “People must be careful, ask questions, and consult professionals before investing their hard-earned money,” Dr. Agama stated.
As part of measures to safeguard the market, the SEC has enhanced its internal surveillance capacity. The DG disclosed that dedicated departments have been created to monitor market activities and carry out onsite inspections, enabling the Commission to swiftly identify and respond to suspicious operations. “Once we hear anything, we do something,” he said, referring to the proactive strategy designed to prevent widespread investment frauds.
Dr. Agama said these initiatives have become even more critical in the wake of the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion. CBEX reportedly lured investors with promises to double their funds within a month and falsely claimed international affiliations. The SEC, he assured, is determined to shut down such operations and bring their promoters to justice.
The ISA 2025, described as a landmark legislation signed into law by President Bola Ahmed Tinubu, has empowered the Commission with new legal tools to tackle fraudulent schemes. For the first time, Ponzi schemes are clearly defined under Nigerian law, with promoters now liable to face a minimum fine of ₦20 million and imprisonment of at least 10 years.
Beyond the fight against Ponzi schemes, the law also brings digital assets under the regulatory oversight of the SEC. Dr. Agama explained that this development mandates all Virtual Asset Service Providers and Digital Asset Exchanges to register with the Commission and operate within established guidelines. This, he said, closes a long-standing legal gap that previously enabled scammers to exploit investors in the digital space without consequences.
“The SEC is capable, has the capacity, has the knowhow, and of course will be able to deal with anyone caught in this mess,” Dr. Agama declared, reiterating the Commission’s readiness to act decisively against all fraudulent operators.
Investor education remains central to the SEC’s broader reform agenda. To this end, the Commission has launched educational campaigns across multiple platforms, including podcasts and social media, while also integrating capital market education into school curricula nationwide. “We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” he noted.
The SEC is urging Nigerians to take personal responsibility by verifying all investment opportunities directly with the Commission before committing their funds. Dr. Agama warned, “Once it is too good to be true, it certainly is not true.”
He reiterated that the Commission is working to democratize wealth creation by providing a transparent and secure capital market environment for all Nigerians. “The capital market helps you to democratize wealth for everybody,” he said, adding that ISA 2025 marks a crucial milestone in protecting investors and ensuring the resilience of Nigeria’s financial market.
As fraudulent investment promoters increasingly target the public through social media and digital channels, the SEC says its message is clear: the era of unchecked exploitation of Nigerian investors is over.
