Nigeria’s Securities and Exchange Commission (SEC), on Thursday, warned against being lured into illegal online investment schemes promoted across social media platforms.
Many of “the increasing promotion of unregistered online investment schemes on social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms,” the commission said in a public notice, exhibit characteristics of Ponzi and prohibited investment operations.
According to the notice, “many of these investment schemes exhibit characteristics of Ponzi or Prohibited investment schemes, while some operators of such schemes also provide unauthorized investment services to members of the public.”
It advised Nigerians “to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns.
“Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the Commission, as reliance on such advisories may expose investors to significant financial losses and fraudulent schemes,” it added.
The notice reminded Nigerians that under the Investments and Securities Act, 2025, only entities registered by the SEC are authorised to promote investment services, provide investment advisory services or solicit funds from the public in the Nigerian capital market.
Prospective investors, it stressed, should verify the registration status of any company, platform or entity offering investment opportunities through its official portals before committing funds.
