AI Deepfake: ARCON Warns Nigerians Over Fake Naira Refinery Investment Fund

The Advertising Regulatory Council of Nigeria (ARCON) has warned Nigerians about a fake investment advertisement circulating on Facebook that allegedly uses artificial intelligence (AI) to impersonate prominent public figures and solicit funds from unsuspecting investors.

The advertisement promotes a purported “Naira Refinery Investment Fund”. It uses the images of President Bola Ahmed Tinubu, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and Chairman of Dangote Group, Aliko Dangote, while promising unrealistic returns on investment.

ARCON Director-General, Dr Olalekan Fadolapo, said in a statement that preliminary investigations showed that the advertisement was computer-generated and designed to mislead and defraud members of the public.

According to him, Tinubu, Oyedele and Dangote did not participate in, model for, or authorise the use of their images in promoting the purported investment fund. The council also clarified that the advertised Naira Refinery Investment Fund is not the same as the ongoing Dangote Refinery Initial Public Offering (IPO) in the Nigerian capital market.

The distinction is significant as the Dangote Refinery IPO has generated considerable interest among retail investors, with the Securities and Exchange Commission (SEC) warning investors against fraudulent websites, social-media accounts, agents and other unauthorised channels seeking to collect money for the offer.

ARCON further disclosed that the advertisement was not submitted to, or approved by, the Advertising Standards Panel (ASP), as required under the Advertising Regulatory Council of Nigeria Act No. 23 of 2022.

The regulator said pre-exposure vetting of advertisements is intended to ensure that marketing communications directed at the Nigerian public are truthful, legal, socially responsible and free from misinformation, disinformation and unsubstantiated claims.

Fadolapo said the council would take necessary legal steps against platform owners, advertisers and advertising agencies found to have participated in exposing unethical advertisements.

He added that ARCON had established a special monitoring and enforcement task force to track advertisements across digital platforms, identify non-compliant materials and flag advertisements targeting the Nigerian market.

The council urged members of the public to exercise caution when responding to investment advertisements online, particularly those promising unusually high or guaranteed returns, and to report deceptive, unethical or illegal advertisements to the appropriate authorities.

The development highlights a growing challenge for digital platforms and regulators as AI-generated images, videos and audio can be used to make fraudulent investment offers appear to have the backing of well-known individuals.

Similar concerns have emerged around the Dangote Refinery IPO. In June, the SEC ordered capital-market operators and digital promoters to stop unauthorised promotional activities relating to the refinery’s purported securities offering, warning that misleading solicitations could distort market expectations and expose investors to risks.

More recently, as the IPO opened, the SEC warned prospective investors to make payments only through approved receiving agents, registered capital-market operators and officially designated subscription channels.

However, for Nigerian consumers, the latest warning underscores the need to independently verify investment opportunities before transferring funds or submitting personal and financial information, especially where social-media advertisements rely on the identities of public figures to establish credibility.