By Sofiat Adenekan-Abdul
The Securities and Exchange Commission (SEC) has warned Nigerians against investing in unregistered online investment schemes promoted across social media platforms, cautioning that many operate as Ponzi schemes.
In a public notice issued Thursday via its official X handle, the commission said it had observed a growing rise in fraudulent investment promotions on platforms including WhatsApp, Instagram, Telegram, Facebook, TikTok, and various websites.
“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 regulator, many of the schemes lure unsuspecting investors with promises of unrealistic and guaranteed returns.
“Many of these investment schemes exhibit characteristics of Ponzi or prohibited investment schemes, while some operators also provide unauthorised investment services to members of the public,” the commission noted.
The SEC stressed that several of the online platforms currently soliciting funds from Nigerians are neither registered nor authorised to operate within the country’s capital market.
It further warned the public against relying on investment advice from individuals or organisations not licensed by the commission.
“Only SEC-registered operators are authorised to provide investment and advisory services in Nigeria,” the notice added.
The commission advised Nigerians to verify the registration status of any investment platform or company before investing, warning that schemes promising unusually high or guaranteed profits often result in fraud and heavy financial losses.
The latest warning comes amid growing concerns over the increasing spread of online financial scams and digital Ponzi schemes targeting Nigerians through social media and internet-based platforms.
Edited by Chinedu Echianu
