The Securities and Exchange Commission has warned Nigerians to steer clear of unregistered online investment schemes being widely promoted on social media, cautioning that many operate as Ponzi or prohibited investment platforms.
In a public notice issued on Thursday, the Commission said it had observed a surge in the promotion of such schemes across digital platforms, including WhatsApp, Instagram, Telegram, Facebook and TikTok.
“Many of these investment schemes exhibit characteristics of Ponzi or prohibited investment schemes, while some operators also provide unauthorized investment services to members of the public,” the SEC stated.
The regulator advised Nigerians to avoid platforms that promise unrealistic or guaranteed returns, stressing that such offers are often indicators of fraudulent activity.
“Accordingly, the Commission hereby advises the public to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns,” it said.
The SEC also warned against relying on investment advice circulated online by individuals or entities not registered with the Commission, noting that such information could expose investors to significant financial losses.
“Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the Commission,” the notice added.
The Commission reiterated that under the Investments and Securities Act, 2025, only entities duly registered with the SEC are authorised to offer investment services, provide advisory services or solicit funds from the public within Nigeria’s capital market.
It urged prospective investors to verify the registration status of any company or platform through its official portals before committing funds.
The warning comes amid growing concerns over the rise of digital investment fraud targeting unsuspecting Nigerians, particularly through social media channels.
