The Securities and Exchange Commission (SEC) has cautioned Nigerians to be vigilant when investing in online platforms that promise unusually high financial returns. According to the Director General of the SEC, Emomotimi Agama, such schemes are likely to be fraudulent and may result in significant financial losses for investors.

Agama, who appeared on Channels Television’s Business Morning, emphasized the importance of verifying the legitimacy of investment platforms before committing funds. He advised potential investors to research the company’s registration status with the SEC and to be wary of promises that seem too good to be true. “If it is too good to be true, certainly it is not true,” Agama stated.

The SEC has issued over 85 notices and advisories to the public regarding fraudulent schemes, including those related to real estate and unusual investment opportunities. Agama urged Nigerians to reach out to the SEC for guidance and to report any suspicious activities. The commission has offices in Lagos, Kano, Port Harcourt, and Abuja, and is available to provide information and support to the public.

In recent months, the Economic and Financial Crimes Commission (EFCC) has identified and taken action against several illegal Ponzi scheme operators in Nigeria. The EFCC has charged many of these companies to court, with some convictions already secured. The affected companies, which include Wales Kingdom Capital, Bethseida Group of Companies, and Crowdyvest Limited, among others, were found to be operating without registration with the Central Bank of Nigeria or the SEC.

The SEC’s warning comes as the commission undergoes digitization efforts to enhance its regulatory capabilities and provide better support to investors. Agama noted that the SEC is working to develop a soft code and mobile app that will enable Nigerians to ask questions and make enquiries about investment opportunities online.

As the Nigerian capital market continues to evolve, it is essential for investors to remain cautious and informed. The SEC’s guidance serves as a reminder of the importance of due diligence and regulatory compliance in protecting investors’ interests. By verifying the legitimacy of investment platforms and reporting suspicious activities, Nigerians can help prevent financial losses and promote a more stable and secure investment environment.