The Securities and Exchange Commission (SEC) has issued a fresh warning to the Nigerian public, urging citizens to be vigilant and report any suspected illegal investment schemes. The call comes amid a growing number of fraudulent financial platforms and Ponzi schemes targeting unsuspecting investors across the country.
In an official statement, the SEC emphasized its commitment to protecting investors and maintaining market integrity. The commission warned that many of these illegal schemes operate without registration, regulatory approval, or transparency — putting investors at risk of financial loss……CONTINUE READING
“We urge Nigerians to exercise extreme caution and report any suspicious investment offers, especially those promising unrealistic returns,” the SEC said.
The SEC listed common red flags to watch out for:
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Promises of high returns with little or no risk
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Lack of licensing or registration with the SEC
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Pressure to recruit others (Pyramid or Ponzi structures)
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Lack of transparency about the business model or leadership
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Vague or fake company profiles
The SEC encourages individuals to report questionable investment platforms via:
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Email: sec@sec.gov.ng
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Official Website: www.sec.gov.ng
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Toll-Free Line: 09-462-1168
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Or visit any SEC zonal office nationwide.
Reports can be made anonymously and will be treated with strict confidentiality.
The Securities and Exchange Commission is the primary regulator for Nigeria’s capital market. It oversees licensing, registration, and supervision of:
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Investment advisers
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Capital market operators
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Public companies and securities issuers
By law, any platform offering investment services or returns must be registered and regulated by the SEC.
In recent years, Nigerians have lost billions of naira to Ponzi schemes, forex scams, and other fraudulent platforms disguised as “investment opportunities.” These scams often collapse suddenly, leaving investors with no recourse.
SEC’s latest advisory is part of an ongoing campaign to educate the public and curb the rise of financial fraud in Nigeria.
As digital financial platforms grow in popularity, so do the risks. The SEC’s message is clear: If it sounds too good to be true, it probably is. Nigerians are encouraged to stay informed, verify platforms before investing, and report suspicious schemes to protect themselves and others.CONTINUE READING
