The Securities and Exchange Commission has warned Nigerians against the growing number of unregistered online investment schemes being promoted across social media platforms, describing many of them as Ponzi operations designed to defraud unsuspecting investors.
In a public notice shared via its official X handle, the Commission said several platforms offering guaranteed or unrealistic returns are not registered or authorised to operate in Nigeria’s capital market.
The SEC said it had observed a growing trend of fraudulent investment promotions across digital platforms, including WhatsApp, Instagram, Telegram, Facebook, and TikTok. “The attention of the Securities and Exchange Commission has been drawn to the increasing promotion of unregistered online investment schemes on social media applications and websites,” the SEC stated.
“Many of these investment schemes exhibit characteristics of Ponzi or prohibited investment schemes, while some operators of such schemes also provide unauthorised investment advisory services,” the commission stated, adding that the schemes are being aggressively marketed to lure members of the public with promises of quick profits.
The Commission advised Nigerians to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns. It also cautioned members of the public against relying on investment advisories circulated through online platforms by persons or entities not registered by the Commission, warning that reliance on such advisories may expose investors to significant financial losses and fraudulent schemes.
The Commission reminded Nigerians that under the provisions of the Investments and Securities Act, 2025, only entities registered by the SEC are authorised to promote investment services, provide investment advisory services, or solicit funds from the public in the Nigerian capital market.
The regulator advised members of the public to verify the registration status of any investment company or platform through its official fintech and capital market operator databases before committing funds.
