From Chukwuma Umeorah
The Securities and Exchange Commission (SEC) has urged Nigerians to report suspected illegal investment schemes for investigation and enforcement action.
In a Thursday notice, the SEC warned that Ponzi schemes threaten the capital market’s growth and stability, highlighting risks from illegal investment operations and unregistered digital asset platforms.
The advisory follows the recent CBEX Investment scam, a digital asset trading platform that allegedly defrauded Nigerians of over N1.3 trillion. The SEC noted that fraudsters exploit investors with false promises of high returns, often using digital assets to appear legitimate.
“The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk,” the SEC stated.
The Commission cautioned against unregistered platforms offering cryptocurrency, forex trading, or blockchain-based schemes without SEC approval. “If it sounds too good to be true, it likely is,” it emphasised.
Investors were advised to verify the registration status of companies or individuals via the SEC’s website and conduct thorough due diligence.
Citing Section 196(3) of the Investments and Securities Act, 2025, the SEC warned that promoting or operating unregistered schemes is punishable by a fine of at least N20 million, up to 10 years in prison, or both.
The Commission vowed to prosecute offenders fully and urged the public to report suspicious schemes to protect Nigeria’s investment environment.