The Securities and Exchange Commission has called on Nigerians to report any suspicious or illegal investment schemes to the Commission for investigation and appropriate action.
The SEC issued this advisory on Thursday, warning the public of the growing threat posed by Ponzi schemes and other fraudulent investment operations, which it says endanger the integrity and development of Nigeria’s capital market.
Following the demise of CBEX, a digital investment platform that assured investors of a 100% return in 30 days, the warning was issued.
CBEX was previously deemed unregistered and not permitted to operate by the SEC.
According to reports, the scheme defrauded over 600,000 Nigerians, resulting in an incredible N1.3 trillion loss.
In its latest notice, the Commission raised alarm over the increasing exploitation of investors by unregistered digital platforms and fraudulent operators using promises of high returns often linked to digital assets to lure victims.
“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.
“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
The Commission encouraged Nigerians to verify the registration status of any company or individual offering investment services via its official website: https://sec.gov.ng/cmos, and to conduct thorough due diligence before committing their money.
It reminded the public that under Section 196(3) of the Investments and Securities Act, 2025, the promotion and operation of illegal or unregistered investment schemes is a criminal offence, punishable by a fine of no less than N20 million, imprisonment for up to 10 years, or both.
The SEC reaffirmed its commitment to prosecuting offenders and protecting investors from exploitation.
“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.
