SEC Warns Nigerians Against Ponzi Schemes Promoted on Social Media

The Securities and Exchange Commission (SEC) has warned Nigerians to avoid investing in illegal online schemes being promoted across social media platforms, saying many of them exhibit the characteristics of Ponzi operations.

In a public notice issued on Thursday in Abuja, the commission said it had observed a growing number of unregistered investment platforms advertising on applications and websites such as WhatsApp, Instagram, Telegram, Facebook and TikTok.

According to the SEC, many of these platforms promise unrealistic or guaranteed returns and may be operating without regulatory approval.

“Our attention has been drawn to the increasing promotion of unregistered online investment schemes on social media applications and websites,” the commission said.

It advised members of the public to refrain from investing in any platform or scheme that is not registered with the commission.

The regulator also cautioned Nigerians against relying on investment advice circulated online by individuals or organisations that are not licensed by the SEC, noting that such advice could expose investors to fraud and significant financial losses.

The commission reminded the public that under the Investments and Securities Act 2025, only entities registered by the SEC are authorised to offer investment products and advisory services in Nigeria.

It urged prospective investors to verify the registration status of any company or platform through the commission’s official portals before committing funds.

The warning comes amid increasing concerns over the spread of digital investment scams targeting Nigerians with promises of quick and guaranteed profits.

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