The Securities and Exchange Commission (SEC) has urged Nigerians to report any suspected illegal investment schemes to the Commission for proper investigation and necessary action.
The Commission issued this notice on Thursday to the investing public, warning that Ponzi investment schemes pose a significant threat to the growth of the capital market.
In its latest advisory, the Commission highlighted the increasing risks associated with Ponzi schemes, illegal investment operations, and unregistered digital asset platforms.
It explained that fraudulent entities and individuals continue to exploit unsuspecting investors through deceptive promises of high returns, often using digital assets to create 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.
“These include unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes, which have not undergone the prescribed approval process with 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 to conduct thorough due diligence before investing and to verify the registration status of any company or individual offering investment opportunities through the SEC’s website: .
Additionally, the Commission explained that Section 196(3) of the Investments and Securities Act, 2025 criminalises the promotion and operation of prohibited or unregistered schemes.
“This violation is punishable upon conviction by a fine of not less than N20 million or a prison term of 10 years, or both,” the Commission warned.
The SEC reaffirmed its commitment 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 Nigeria’s investment environment by promptly reporting suspected illegal investment schemes to the Commission,” the notice concluded.
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