The Securities and Exchange Commission has warned Nigerians against the growing number of unregistered online investment schemes being promoted across social media platforms, describing many of them as Ponzi operations designed to defraud unsuspecting investors.
- +SEC raises alarm over shady online investment platforms
In a public notice dated 8 May 2026, and shared via its official X handle on Thursday, the Commission said several platforms offering guaranteed or unrealistic returns are not registered or authorised to operate in Nigeria’s capital market.
In a public notice dated 8 May 2026, and shared via its official X handle on Thursday, the Commission said several platforms offering guaranteed or unrealistic returns are not registered or authorised to operate in Nigeria’s capital market. According to the SEC, the schemes are being aggressively marketed on WhatsApp, Instagram, TikTok, Telegram, Facebook, and other digital platforms to lure members of the public with promises of quick profits.
“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 regulator stated.
The Commission noted that many of the operators exhibit characteristics of Ponzi or prohibited investment schemes, while some also provide unauthorised investment advisory services.
It urged Nigerians to avoid investment platforms promising unrealistic returns, warning that such schemes often expose investors to fraud and severe financial losses, stressing that only entities registered with the Commission are legally permitted to offer investment and advisory services in Nigeria.
The regulator advised members of the public to verify the registration status of any investment company or platform through its official fintech and capital market operator databases before committing funds.
The latest warning comes amid increased regulatory scrutiny of suspected fraudulent investment operators. The Commission reiterated that the Investments and Securities Act 2025 empowers only registered entities to solicit investments in Nigeria, adding that public awareness and due diligence remain key to combating financial scams.
