By Onu Okorie
The Securities and Exchange Commission (SEC) has warned Nigerians against investing in illegal online investment schemes being promoted across social media platforms, saying many of them exhibit characteristics of Ponzi and prohibited investment operations.
In a public notice issued yesterday, the Commission said its attention had been drawn to “the increasing promotion of unregistered online investment schemes on social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms.”
According to the SEC, “many of these investment schemes exhibit characteristics of Ponzi or Prohibited investment schemes, while some operators of such schemes also provide unauthorized investment services to members of the public.”
The Commission advised Nigerians to refrain from investing in platforms promising unrealistic returns.
It stated: “Accordingly, the Commission hereby advises the public to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns.”
The SEC also cautioned members of the public against relying on investment advisories circulated online by unregistered persons or entities.
“Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the Commission, as reliance on such advisories may expose investors to significant financial losses and fraudulent schemes,” it added.
The Commission reminded Nigerians that under the Investments and Securities Act, 2025, only entities registered by the SEC are authorised to promote investment services, provide investment advisory services or solicit funds from the public in the Nigerian capital market.
The SEC urged prospective investors to verify the registration status of any company, platform or entity offering investment opportunities through its official portals before committing funds.
It directed the public to check registered operators on SEC Fintech Registered Operators Portal and SEC CMOs Portal before transacting with any investment platform.