SEC Cracks Down on Unregistered Investment Promotions by Influencers, Enforces New Securities Act
In a strong move to protect Nigerian investors, the Securities and Exchange Commission (SEC) has issued a stern warning to celebrities, bloggers, and social media influencers promoting unregistered investment schemes. Under the newly enacted Investments and Securities Act (ISA) 2025, the SEC now has expanded powers to clamp down on such illegal financial promotions. Collaborating with agencies like the EFCC and the Nigerian Police, the SEC says it’s going all in on prosecuting and dismantling fraudulent operations that prey on unsuspecting Nigerians through online channels.
Speaking in Abuja, SEC Director General Dr. Emomotimi Agama emphasized that the new law doesn’t just go after fraudulent investment platforms—it also targets those who promote them. Influencers and bloggers found guilty of promoting such schemes face severe consequences, including a N20 million fine and up to 10 years in prison. This move is aimed squarely at curbing the trend of online personalities using their platforms to push get-rich-quick scams without any due diligence or accountability.
The recent collapse of CBEX, a digital platform that allegedly defrauded investors of over N1.3 trillion, has become a wake-up call for regulators. CBEX lured people with unrealistic returns and fake international affiliations, highlighting the dangers of unchecked online investment promotions. In response, ISA 2025 now officially classifies digital assets as securities and requires all virtual asset service providers (VASPs) and exchanges to register with the SEC. This closes a long-standing loophole that many Ponzi-style operators have exploited using crypto as a disguise.
Beyond enforcement, the SEC is also pushing a nationwide educational campaign to arm Nigerians with financial literacy. From digital media campaigns and podcasts to incorporating capital market education into school curriculums, the goal is to build a population that can spot red flags early. “If it sounds too good to be true, it probably is,” Dr. Agama warned, reinforcing the Commission’s dual strategy of strong regulation and grassroots education.
Source: The Guardian