Nigeria’s Securities and Exchange Commission (SEC), on Thursday urged Nigerians to report any suspected illegal investments scheme for proper investigation and necessary action.

Ponzi investment schemes, the commission said in a notice pose great danger to the growth of the nation’s capital market, lamenting the growing threats and risks posed by illegal investment operations, and unregistered digital assets platforms.

The notice explained that fraudulent entities and individuals have continued to exploit unsuspecting investors through deceptive promises of high returns, often leveraging the allure of digital assets to create an erroneous perception of legitimacy.

According to the SEC, “the public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk.

“These include unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes, without subjecting themselves to the prescribed processes for obtaining the prior approval of the SEC.

“The SEC reiterates in this regard that ‘If it sounds too good to be true, it likely is,” he added.

The commission urged potential investors to conduct thorough due diligence before investing and should verify the registration status of the company or individual offering the investment through the SEC’s website: https://sec.gov.ng/cmos.

The Commission explained that Section 196 (3) of the Investments and Securities Act, 2025 criminalises the promotion and operation of prohibited/unregistered schemes.

“This violation is punishable upon conviction by a fine of not less than N20m or a prison term of 10 years or both”, the Commission warned.

The SEC expressed full commitment to identifying and prosecuting offenders to the full extent of the law, just as it encouraged “the public to partner with the SEC to safeguard the integrity of the investment environment in Nigeria by promptly reporting suspected illegal investment schemes to the SEC.”