From Adanna Nnamani, Abuja
The Securities and Exchange Commission (SEC) has called on Nigerians to report any suspected illegal investment schemes for investigation and appropriate action.
This follows the recent collapse of a fraudulent cryptocurrency investment scheme known as “CBEX,” where over $1 billion was lost by Nigerians.
In a notice issued on Thursday, the commission warned that Ponzi schemes and other fraudulent investments posed significant threats to the growth and stability of Nigeria’s capital market.
SEC, expressed concern over the rise of Ponzi schemes, illegal investment operations, and unregistered digital asset platforms. It noted that fraudsters continue to deceive unsuspecting investors by making unrealistic promises of high returns, often using digital assets to give a false sense 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,” the commission said.
It specifically warned against unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes that have not secured prior approval from the SEC.
“If it sounds too good to be true, it likely is,” the notice stated.
The commission urged potential investors to conduct proper due diligence before committing their funds. It advised that the registration status of any investment company or promoter can be verified on the SEC’s official website.
The SEC also cited Section 196 (3) of the Investments and Securities Act, 2025, which criminalises the promotion and operation of unregistered or prohibited schemes. Offenders, upon conviction, risk a fine of at least N20 million, a 10-year prison sentence, or both.
Reaffirming its commitment to protecting investors, the SEC pledged to identify and prosecute violators 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 statement concluded.