The Securities and Exchange Commission (SEC) has warned the public about the increasing threat of Ponzi schemes and other illegal investment platforms in Nigeria. According to the commission, these schemes pose a serious risk to the stability and growth of the country’s capital market.
In a statement released on Thursday, the SEC urged Nigerians to report any suspicious investment activities for investigation and possible enforcement action. The commission cautioned investors to avoid platforms that promise guaranteed or unusually high returns with little or no risk, especially those disguised as cryptocurrency, forex or blockchain investments.
The SEC noted that many of these platforms are not registered with the commission and are therefore operating illegally. It explained that such operations violate the Investments and Securities Act, 2025. Anyone found guilty under the law could face a fine of at least ₦20 million, imprisonment of up to 10 years or both.
The commission encouraged the public to verify the registration status of any investment platform or promoter on its official website before putting in their money. It assured Nigerians of its commitment to tracking and prosecuting offenders and called for public support in reporting suspicious activities to safeguard the market’s integrity.