The Securities and Exchange Commission (SEC) has warned Nigerians against investing in unregulated schemes, stating that registration with the Corporate Affairs Commission (CAC) or possession of a SCUML certificate from the Economic and Financial Crimes Commission (EFCC) does not qualify a company to operate an investment business in Nigeria.
Director-General of the SEC, Dr. Emomotimi Agama, gave the warning on Wednesday during a sensitisation outreach at Garki Market in Abuja, where officials engaged traders and members of the public on the dangers of Ponzi schemes.
Agama said it was troubling that both Nigerian and foreign entities continue to deceive unsuspecting members of the public by exploiting regulatory gaps and false claims of legitimacy. According to him, the federal government will no longer tolerate the unchecked exploitation of citizens through fraudulent investment platforms.
“It is disheartening that some Nigerians and foreign companies have specialised in duping people, and the government won’t sit and watch this continue,” he said. “This is why the SEC is out in the open, educating the public. If it sounds too good to be true, then you need to be cautious.”
He pointed out that with the enactment of the new Investments and Securities Act, operators of Ponzi schemes now face a N20 million fine and up to 10 years in prison. This legal framework, he explained, strengthens the Commission’s ability to shut down illicit investment operators that continue to damage public trust and the economy.
Agama urged Nigerians to be vigilant and to confirm the regulatory status of any investment offer with the SEC before committing their money. “We are here to support Nigerians, to help them verify what is legitimate. We feel their pain and that’s why we’re doing this sensitisation campaign,” he said.
He also warned that promotional events and so-called training programmes used by fraudulent firms to lure investors are illegal. “Registering with CAC or getting a SCUML certificate is not the same as SEC registration. These are red flags that people must be aware of,” he cautioned.
The outreach at Garki Market is part of a nationwide campaign by the SEC to increase awareness and financial literacy among the public, particularly in vulnerable communities.
Also speaking during the event, the Assistant Director in the SEC’s Enforcement Department, Tope Onwionoko, said the Commission is intensifying efforts to ensure that knowledge about financial scams is widely shared across all demographics.
“We want the message to reach everyone—from the oldest to the youngest, the rich and the poor,” she said. “That’s why we brought it to the market, knowing the important role traders play in the economy. We want them to understand what to look out for and how to identify red flags.”
Onwionoko explained that most victims of Ponzi schemes are individuals who lack sufficient information about how such operations work. “Economic hardship may push people to seek quick returns, but what makes them vulnerable is the lack of knowledge. If you don’t know someone is trying to take what you have, you won’t see it coming,” she said.
She expressed optimism that the continued awareness efforts will reduce the number of victims and force fraudulent operators out of business.
The SEC advised the public to report any suspicious investment activity to the Commission and to consult its official platforms for verified information about registered investment schemes in Nigeria.
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