By Seun Ibiyemi
The Securities and Exchange Commission (SEC) has warned Nigerians against investing in illegal online investment schemes being promoted across various social media platforms, cautioning that many of them operate as Ponzi schemes and other prohibited investment arrangements.
In a public notice issued on Thursday in Abuja, the commission said it had observed a growing trend of unregistered online investment platforms advertising unrealistic returns through digital channels such as WhatsApp, Instagram, Telegram, Facebook, TikTok, and other websites.
According to the commission, many of the schemes exhibit characteristics associated with fraudulent investment operations, while some operators also provide unauthorised investment and advisory services to members of the public.
The SEC advised Nigerians to avoid participating in any investment platform or scheme that promises guaranteed or unrealistic returns, warning that such offers often expose investors to financial losses and fraud.
The commission also cautioned the public against relying on investment tips and advisories circulated online by individuals or entities that are not registered with the SEC.
“Reliance on such advisories may expose investors to significant financial losses and fraudulent schemes,” the commission stated.
READ ALSO:CGC Adeniyi advocates human-centred digital transformation at UNILORIN conference
The SEC further reminded Nigerians that under the Investments and Securities Act, 2025, only entities registered by the commission are authorised to promote investment services or provide investment advisory services in the country.
It urged prospective investors to verify the registration status of any company, platform, or individual offering investment opportunities through its official portals before committing funds.
The commission directed members of the public to confirm operators through the SEC Fintech Registered Operators Portal and the SEC Capital Market Operators Portal before engaging in any investment transaction.
