Report Any Suspected Illegal Investment Schemes, SEC Tells Nigerians

The Securities and Exchange Commission has urged Nigerians to report any suspected illegal investment scheme to the commission for proper investigation and necessary action.

The Commission said this in a notice issued on Thursday to the investing public, warning that Ponzi investment schemes posed great danger to the growth of the capital market.

The warning is coming a few days after CBEX, a digital investment platform described by the Securities and Exchange Commission (SEC) as unregistered to operate any such service, offered investors 100 per cent profit after 30 days of purported trading.

No fewer than 600,000 Nigerians who reportedly invested in the scheme were caught in the web and lost a staggering N1.3trn after the Ponzi scheme collapsed recently.

In its latest advisory, the Commission warned the public about the growing threats and risks posed by Ponzi schemes, illegal investment operations, and unregistered digital assets platforms.

It explained that fraudulent entities and individuals have continued to exploit unsuspecting investors through deceptive promises of high returns, often leveraging the allure of digital assets to create an erroneous perception of legitimacy.

“The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk.

“These include unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes, without subjecting themselves to the prescribed processes for obtaining the prior approval of the SEC.

“The SEC reiterates in this regard that ‘If it sounds too good to be true, it likely is.”

The commission urged potential investors are to conduct thorough due diligence before investing and should verify the registration status of the company or individual offering the investment through the SEC’s website: https://sec.gov.ng/cmos.

Section 196 (3) of the Investments and Securities Act, 2025 criminalizes the promotion and operation of prohibited/unregistered schemes.

This violation is punishable upon conviction by a fine of not less than N20m or a prison term of 10 years or both.

The SEC said it is fully committed to identifying and prosecuting offenders to the full extent of the law.

“We encourage the public to partner with the SEC to safeguard the integrity of the investment environment in Nigeria by promptly reporting suspected illegal investment schemes to the SEC,” the notice concluded.

ENDS

Report Any Suspected Illegal Investment Schemes, SEC Tells Nigerians is first published on The Whistler Newspaper