The Securities and Exchange Commission (SEC) has raised fresh concerns over the continued rise in Ponzi scheme investments among Nigerians, despite the availability of safer and regulated options.
Speaking during a Capital Market Enlightenment Programme held in Lagos, Dr. Sa’ad Abdulsalam, Head of the SEC’s Enforcement Department, stressed the need for greater public awareness. He noted that many Nigerians still fall victim to fraudulent schemes that promise unrealistic returns, often ignoring credible and regulated investment products.
Dr. Abdulsalam reminded the public of the 2016 MMM crash, where over three million Nigerians lost about ₦18 billion. He also cited a 2022 report revealing that Nigerians lost over ₦300 billion to Ponzi schemes in just five years.
“There are many safe and approved options like mutual funds, non-interest funds and Islamic investment products,” Abdulsalam said. “But people are drawn to Ponzi schemes because of the promise of quick and high returns.”
He advised investors to verify any investment company or product through the SEC before committing funds. “If you’re unsure, send us an email to confirm the status of an operator,” he added.
The SEC warned that fraudulent schemes not only wipe out people’s savings but also damage trust in the capital market. These scams, according to Abdulsalam, can lead to severe financial stress, broken trust and increased poverty within communities.
He also cautioned against the misuse of the SCUML certificate, which is often displayed by fraudsters to appear legitimate. He clarified that the certificate is only for anti-money laundering compliance and not a licence to operate.
The SEC is currently working with the EFCC to review the certificate format and introduce better verification methods, such as digital codes.
The Commission urged the public to stay alert, verify every investment opportunity and prioritise safety over quick gains.