Ponzi: Report Any Suspected Illegal Investment Schemes, SEC Urges Nigerians

The Securities and Exchange Commission (SEC) has urged Nigerians to report any suspected illegal investment schemes to the commission for proper investigation and necessary action.

In a notice issued yesterday, the SEC warned the investing public about the significant dangers posed by Ponzi investment schemes, which threaten the growth of the capital market.

In its latest advisory, the commission highlighted the increasing risks associated with Ponzi schemes, illegal investment operations, and unregistered digital asset platforms.

It explained that fraudulent entities continue to exploit unsuspecting investors with deceptive promises of high returns, often using the allure of digital assets to create a misleading perception of legitimacy.

“The public is strongly advised to be cautious of investment opportunities that promise guaranteed or unusually high returns with little or no risk. This includes unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes that have not gone through the required processes for obtaining prior approval from the SEC,” it stated.

The SEC urged potential investors to conduct thorough due diligence before making any investments and to verify the registration status of the company or individual offering the investment through the SEC’s website.

The commission explained that Section 196(3) of the Investments and Securities Act 2025 criminalises the promotion and operation of prohibited or unregistered schemes. Violating this law may result in a fine of not less than N20 million, a prison term of 10 years, or both.

“The SEC is fully committed to identifying and prosecuting offenders to the fullest extent of the law. The commission encourages the public to partner with the SEC to safeguard the integrity of the investment environment in Nigeria by promptly reporting any suspected illegal investment schemes to the SEC,” it said.