SEC Warns Influencers, Bloggers Against Promoting Ponzi Schemes

The Securities and Exchange Commission (SEC) has warned influencers and bloggers against promoting unregistered investment schemes.

The Commission emphasised its ongoing collaboration with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other relevant government bodies, to investigate and prosecute violators.

SEC’s director-general, Dr. Emomotimi Agama, highlighted that the Investments and Securities Act (ISA) 2025 specifically targets individuals who promote unregistered schemes.

He urged celebrities, social media influencers, and bloggers to avoid endorsing such ventures to prevent legal consequences.

Agama pointed out that the law applies to influencers and bloggers who support fraudulent schemes, saying it carries severe penalties, including imprisonment.

“We are, therefore, using this medium to caution individuals against promoting unregistered entities,” Agama said.

He further stressed that the SEC had ramped up its efforts to combat Ponzi schemes following the introduction of ISA 2025, a landmark law signed by President Bola Ahmed Tinubu.

This new legislation clearly defines Ponzi schemes and introduces stringent penalties, including a minimum fine of N20 million and a possible 10-year jail term for those who promote fraudulent activities.

Agama reassured that the SEC is well-equipped to tackle Ponzi schemes, citing the Commission’s success in addressing similar frauds in the past. He noted that the new law’s powers would enhance the SEC’s ability to protect investors and strengthen the market.

“The recent collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion, underscores the urgency for this crackdown,” he added. “CBEX promised unrealistic returns, claiming to double investments within a month, and deceived many with false claims of global affiliations.”

For the first time, the Investments and Securities Act extends the SEC’s regulatory authority to digital assets, recognising virtual assets as securities.

The SEC urged Nigerians to verify any investment opportunities with the Commission before committing funds, warning that if an offer sounds too good to be true, it likely is.

Reaffirming the Commission’s commitment to investor protection, Agama stressed SEC’s dual focus on safeguarding investors and promoting market development. He advised Nigerians to exercise caution, consult with professionals before investing, and avoid schemes promising unrealistic returns.

“The SEC has established specialised departments to monitor market activities and conduct inspections to identify irregularities early. We have a dedicated monitoring department, and we carry out onsite inspections. Once we receive credible information, we take swift action. These proactive steps are aimed at preventing the recurrence of major frauds like CBEX.

“The ISA 2025 is a critical step forward in protecting Nigerian investors and nurturing a resilient financial market, ensuring a secure environment where all can access wealth,” he said, adding that the Commission remains committed to democratising wealth through a safe and transparent capital market.