The Securities and Exchange Commission (SEC) has warned Nigerians against the growing promotion of unregistered online investment schemes across social media applications and digital platforms.
In a statement issued on Thursday, the Commission said the schemes are increasingly being advertised on platforms including WhatsApp, Instagram, Telegram, Facebook, TikTok, and other online channels.
According to the SEC, many of the schemes exhibit the characteristics of Ponzi or prohibited investment operations designed to lure unsuspecting investors with promises of unrealistic returns.
The Commission noted that some operators behind the schemes also claim to provide authorised investment services to members of the public, despite not being properly registered.
“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,” the statement read.
The regulator also warned Nigerians against relying on investment advice circulated online by individuals or entities not registered with the Commission.
“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, as reliance on such advisories may expose investors to significant financial losses and fraudulent schemes,” the SEC stated.
The Commission reminded the public that under the provisions of the Investments and Securities Act 2025, only entities registered by the SEC are legally authorised to promote investment services, provide investment advisory services, or solicit funds from the public within Nigeria’s capital market.
As part of efforts to protect investors, the SEC urged Nigerians to verify the registration status of any company, platform, or entity offering investment opportunities through the Commission’s dedicated verification portals before committing funds.
The warning comes amid increasing concerns over the rise of fraudulent digital investment platforms targeting Nigerians through social media campaigns, online communities, and messaging applications.
