The Securities and Exchange Commission, SEC, has issued a warning to Nigerians about the rising threat of Ponzi schemes, illegal investment ventures, and unregistered digital asset platforms.
The Commission, in a statement on Thursday, expressed concern over the persistent activities of fraudulent individuals and entities who continue to prey on unsuspecting investors by offering deceptively high returns.
It noted that these schemes often exploit the growing popularity of digital assets to create a false sense of legitimacy.
“The public is strongly advised to exercise extreme caution when approached with investment opportunities that promise guaranteed or unusually high returns with minimal or no risk,” the statement read.
The SEC particularly flagged unregistered platforms promoting cryptocurrency investments, forex trading, and blockchain-based schemes that operate without seeking the Commission’s prior approval as required by law.
Reiterating the timeless adage, “If it sounds too good to be true, it probably is,” the Commission urged investors to conduct proper due diligence and verify the registration status of any individual or firm offering investment opportunities through its official website.
The SEC also cited Section 196(3) of the Investments and Securities Act, 2025, which criminalises the promotion and operation of unregistered or prohibited schemes. Offenders face a penalty of no less than N20 million in fines, a 10-year jail term, or both upon conviction.
Restating its commitment to protecting investors and maintaining market integrity, the Commission pledged to identify and prosecute violators to the full extent of the law.
The SEC called on the public to join efforts to safeguard Nigeria’s investment environment by reporting any suspected illegal investment activities promptly.
