Nigeria SEC warns against illegal investment schemes online

The Securities and Exchange Commission (SEC) has warned Nigerians to be vigilant when investing in online platforms that promise unusually high returns. Director General Emomotimi Agama told Channels Television’s Business Morning that such schemes are likely fraudulent and can lead to significant financial losses. He stressed the importance of verifying the legitimacy of investment platforms before committing funds, advising potential investors to check a 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 said.

The SEC has issued more than 85 notices and advisories to the public about fraudulent schemes, including those involving real estate and unconventional investment opportunities. Agama urged Nigerians to contact the SEC for guidance and to report any suspicious activities. The commission maintains offices in Lagos, Kano, Port Harcourt, and Abuja, and is available to provide information and support.

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 in court, securing some convictions. Affected firms such as Wales Kingdom Capital, Bethseida Group of Companies, and Crowdyvest Limited were found to be operating without registration with the Central Bank of Nigeria or the SEC.

The SEC’s warning comes as the commission pursues digitization efforts to enhance its regulatory capabilities and better support investors. Agama noted that the SEC is developing a soft code and a mobile app that will allow Nigerians to ask questions and make enquiries about investment opportunities online. As the Nigerian capital market evolves, investors must remain cautious and informed. The SEC’s guidance underscores 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, secure investment environment.