Barbara Bako, Abuja.
The Securities and Exchange Commission (SEC) has cautioned the public against investing in unregistered online schemes being widely promoted across social media platforms, warning that many of them display features of Ponzi and other prohibited investment operations.
In a public notice issued on Thursday, the Commission said it had observed “the increasing promotion of unregistered online investment schemes on social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms.”
According to the SEC, “many of these investment schemes exhibit characteristics of Ponzi or Prohibited investment schemes, while some operators of such schemes also provide unauthorized investment services to members of the public.”
The Commission urged Nigerians to avoid platforms promising unrealistic or guaranteed returns.
It stated: “Accordingly, the Commission hereby advises the public to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns.”
The SEC further warned against relying on investment advice circulated online by unregistered individuals or entities.
“Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the Commission, as reliance on such advisories may expose investors to significant financial losses and fraudulent schemes,” it added.
The Commission noted that under the Investments and Securities Act, 2025, only entities registered with the SEC are authorised to offer investment services, provide advisory services, or solicit funds from the public in Nigeria’s capital market.
It urged prospective investors to always verify the registration status of any company or platform before committing funds, advising them to consult the SEC Fintech Registered Operators Portal and the SEC CMO Portal before transacting any investment scheme.
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