SEC warns Nigerians against rising Ponzi schemes on social media
SEC Issues Warning on Unregistered Online Investment Schemes
The Securities and Exchange Commission (SEC) has issued a cautionary statement to Nigerians regarding unregistered online investment schemes that are being aggressively promoted on social media. The Commission identified these schemes as resembling Ponzi operations, underscoring the potential risks involved for investors.
The warning, dated May 8, 2026, was disseminated through the SEC’s official communication channels. The agency noted that numerous online platforms are offering unrealistic or guaranteed returns without being registered or authorized to operate within Nigeria’s capital market.
“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 said. It highlighted that many of these schemes share characteristics commonly associated with fraudulent investment arrangements.
The SEC cautioned that individuals who engage with these platforms could face significant financial losses. It emphasized that promises of unusually high returns should be regarded as red flags.
In light of these warnings, the Commission advised Nigerians to avoid participating in such unregistered investment ventures and discouraged reliance on financial advice from unlicensed individuals or entities. Only operators registered with the SEC are legally permitted to offer investment and advisory services in Nigeria.
The agency further encouraged prospective investors to verify the registration status of any investment entity or promoter prior to committing funds. “The investing public is advised to confirm the status of companies and entities offering investment opportunities through the Commission’s dedicated verification portal before transacting with them,” the SEC stated.
