CAC, EFCC Certificates Not Substitute For Registration, SEC Warns Investors

The director-general of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has issued a warning to Nigerians about firms that claim their registration with the Corporate Affairs Commission (CAC) and possession of a SCUML certificate from the Economic and Financial Crimes Commission (EFCC) authorise them to operate investment schemes in Nigeria.

Agama shared this message during a recent interview with journalists at a sensitization tour in Abuja aimed at raising awareness against Ponzi schemes.

He expressed disappointment that some Nigerians and foreign companies have specialized in defrauding individuals through fraudulent investment schemes, saying SEC intends to take action against the increasing loss of billions of naira by the public in these scams.

“The public must recognise the risks of investing their hard-earned money in ventures that are not registered or regulated by the SEC,” Agama stated.

He noted, “we have witnessed numerous Ponzi schemes in the past. The Investments and Securities Act, signed into law by the President, enforces a fine of N20 million and a 10-year prison sentence for those found guilty of operating Ponzi schemes.”

Agama emphasized the importance of their outreach efforts to inform the public, saying “we are here to assist them in confirming legitimate investment schemes, and we understand their concerns. It is crucial to educate them to prevent being deceived. CAC registration and an EFCC certificate alone do not guarantee that a company is registered with the SEC; these are warning signs.”

He cautioned that training programmes organised by these fraudulent entities to attract investors are also illegal. The assistant director of the Enforcement Department at SEC, Tope Onwionoko reiterated the Commission’s commitment to promoting financial literacy, particularly regarding the rise of Ponzi schemes in society.