The Securities and Exchange Commission has warned Nigerians against investing in unregistered online investment schemes being promoted across social media platforms, cautioning that many operate like Ponzi schemes.
In a public notice shared on its X handle on Thursday, May 14, the commission said it had observed an increase in fraudulent investment promotions on platforms including WhatsApp, Instagram, Telegram, Facebook and TikTok. “The attention of the Securities and Exchange Commission has been drawn to the increasing promotion of unregistered online investment schemes on social media applications and websites,” the SEC stated.
According to the commission, many of the schemes lure unsuspecting Nigerians with promises of unrealistic or guaranteed returns.
“Many of these investment schemes exhibit characteristics of Ponzi or prohibited investment schemes, while some operators of such schemes also provide unauthorised investment services to members of the public,” the notice added.
The SEC stressed that several of the platforms currently operating online are neither registered nor authorised to operate within Nigeria’s capital market. The commission also warned Nigerians against relying on investment advice from individuals or organisations not licensed by the regulator.
“Only SEC-registered operators are authorised to provide investment and advisory services in Nigeria,” it said. The regulator advised members of the public to verify the registration status of any investment platform or company before committing funds.
It further warned that schemes promising unusually high or guaranteed profits often expose investors to fraud and severe financial losses. The latest warning comes amid growing concerns over the rise of digital financial scams and online Ponzi schemes targeting Nigerians through social media and internet-based platforms.
