The Securities and Exchange Commission (SEC) Nigeria has urged the investing public to report any suspected illegal investments scheme to it for proper investigation and necessary action.
In a Notice issued on Thursday to the investing public, the commission warned that Ponzi investment schemes posed great danger to the growth of the capital market.
In its latest advisory to the investing public, the Commission highlighted the growing threats and risks posed by Ponzi schemes, illegal investment operations, and unregistered digital assets platforms.
The commission maintained that fraudulent entities and individuals had 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 Notice reads in part: “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”, it added
As a way of escaping from Ponzi scheme promoters and other fraudsters’ risks, the commission urged potential investors to conduct thorough due diligence before investing and verify the registration status of the company or individual offering the investment through the SEC’s website https://sec.gov.ng/cmos.
The Commission clarified that Section 196 (3) of the Investments and Securities Act, 2025 criminalises the promotion and operation of prohibited/unregistered schemes, stressing that “this violation is punishable upon conviction by a fine of not less than N20m or a prison term of 10 years or both.”
While assuring the investing public of its commitment to identifying and prosecuting offenders to the full extent of the law, the SEC encouraged the public to partner with it “to safeguard the integrity of the investment environment in Nigeria by promptly reporting suspected illegal investment schemes to the SEC.”
