Nigeria’s Securities and Exchange Commission (SEC), the apex regulator of the capital market, has issued a stern warning to celebrities, social media influencers, and bloggers about the promotion of unregistered and fraudulent investment schemes.
The Commission reminded the public that the recently signed Investments and Securities Act (ISA) 2025 carries severe penalties for violations, including heavy fines and potential jail terms.
In a statement released yesterday, the SEC revealed that it is collaborating with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other relevant government institutions, to investigate and prosecute individuals and platforms involved in illegal investment promotions.
Dr. Emomotimi Agama, the SEC’s Director General, emphasised that the ISA 2025 includes specific provisions targeting the promoters of fraudulent and unregistered schemes. He warned that influencers and bloggers who use their platforms to promote such ventures now face serious legal risks, including imprisonment.
“The law is clear and also targets influencers and bloggers who promote fraudulent schemes. The penalties for such actions include prison sentences,” Dr. Agama said, urging them to cease these activities immediately.
The SEC, he added, remains committed to its core responsibilities of investor protection and capital market development. Dr. Agama advised Nigerians to exercise caution when presented with investment opportunities, particularly those promising unreasonably high returns. “People must be cautious, ask questions, and consult professionals before investing their hard-earned money,” he urged.
As part of its efforts to protect the market, the SEC has strengthened its internal surveillance capabilities. Dr. Agama disclosed that dedicated departments have been established to monitor market activities and conduct onsite inspections. This proactive strategy aims to quickly identify and respond to suspicious operations. “Once we hear anything, we act,” he affirmed.
These initiatives have become even more crucial following the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion. CBEX reportedly enticed investors with promises to double their funds within a month, falsely claiming international affiliations. The SEC assured the public that it is determined to shut down such fraudulent operations and bring the perpetrators to justice.
The ISA 2025, signed into law by President Bola Ahmed Tinubu, has equipped the Commission with enhanced legal tools to combat fraudulent schemes. For the first time, Ponzi schemes are clearly defined under Nigerian law, with promoters facing a minimum fine of ₦20 million and imprisonment of at least 10 years.
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In addition to targeting Ponzi schemes, the new law brings digital assets under the SEC’s regulatory oversight. Dr. Agama explained that all Virtual Asset Service Providers (VASPs) and Digital Asset Exchanges are now required to register with the Commission and operate within established guidelines. This addresses a long-standing legal gap that allowed scammers to exploit investors in the digital space without consequences.
“The SEC has the capacity, expertise, and determination to take decisive action against anyone involved in fraudulent activities,” Dr. Agama stated, reinforcing the Commission’s commitment to protecting investors.
Investor education remains a key part of the SEC’s broader reform agenda. To this end, the Commission has launched educational campaigns across various platforms, including podcasts and social media, and is incorporating capital market education into school curricula nationwide. “We have launched a podcast to educate Nigerians on the dangers of investing in unregistered schemes,” he said.
The SEC is urging Nigerians to verify all investment opportunities directly with the Commission before committing their funds. Dr. Agama cautioned, “If something seems too good to be true, it almost certainly is not.”
He concluded by reiterating that the Commission is working to democratise wealth creation by providing a transparent and secure capital market environment for all Nigerians. “The capital market helps democratise wealth for everyone,” he said, adding that the ISA 2025 marks a significant step forward in protecting investors and ensuring the resilience of Nigeria’s financial market.
As fraudulent investment promoters increasingly target the public through social media and digital channels, the SEC’s message is clear: the era of unchecked exploitation of Nigerian investors is over.
