SEC Warns Nigerians to Beware of Online Investment Scams, Advises Verification Before Investing
The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians about the growing threat of online financial scams promising unrealistic returns. Director-General Emomotimi Agama highlighted the importance of carefully vetting investment platforms before committing funds. Speaking on Channels Television’s Business Morning, Agama emphasized that investors must remain vigilant and sceptical of offers that seem “too good to be true.”
Agama stressed that registration with the SEC is a key indicator of an investment platform’s credibility. He advised Nigerians to ensure that any investment firm is not only registered with the Corporate Affairs Commission (CAC) but also licensed by the SEC. “If an offer seems too good to be true, it’s essential to investigate further,” he said, urging investors to prioritize verified and regulated investment opportunities.
The SEC chief revealed that numerous fraudulent schemes have been circulating in Nigeria, luring individuals with promises of excessive profits. To protect the public, the SEC has proactively issued more than 85 advisories highlighting illegal operators and potential scams. These warnings aim to prevent Nigerians from falling victim to Ponzi schemes and other deceptive investment practices.
Agama referenced Section 3(a) of the Investment and Securities Act 2025, which grants the SEC authority to regulate businesses operating within Nigeria’s capital market. He encouraged investors to make use of SEC offices and upcoming digital platforms to verify the legitimacy of investment firms. “It is important to scrutinize promises that appear implausible; these can often indicate fraud. Ask questions and confirm legitimacy before investing,” he added.
The alert comes amid recent findings by the Economic and Financial Crimes Commission (EFCC), which identified 58 unregistered Ponzi scheme operators, including Wales Kingdom Capital, MBA Trading & Capital Investment Limited, Ovaioza Farm Produce Storage Limited, and Chinmark Homes. Authorities continue to urge Nigerians to exercise caution and verify the credentials of any firm soliciting investments.
Source: Nairametrics