NIGERIA: SEC Warns Influencers, Bloggers Against Promoting Unregistered Investment Schemes

By Ameenat Hamzat, Lagos, Nigeria

The Securities and Exchange Commission (SEC) has issued a stern warning to celebrities, social media influencers, and bloggers over the promotion of unregistered and fraudulent investment schemes

In a statement on Sunday, the Commission emphasized that the recently signed Investments and Securities Act (ISA) 2025 prescribes severe penalties for violators, including heavy fines and imprisonment.

To curb the menace, the SEC said it is working in collaboration with law enforcement agencies including the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other relevant bodies to investigate and prosecute individuals and platforms involved in such illicit promotions.

Director General of the SEC, Dr. Emomotimi Agama stated that the ISA 2025 specifically targets promoters of fraudulent and unregistered investment schemes.

He said: “The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment.”

Dr. Agama stressed that the Commission remains committed to its core responsibilities of investor protection and capital market development. He also advised Nigerians to be wary of investment offers that promise unrealistically high returns.

He stated.“People must be careful, ask questions, and consult professionals before investing their hard-earned money.”

To further safeguard investors, the SEC has enhanced its internal surveillance capacity, creating dedicated departments to monitor market activities and conduct onsite inspections to enable swift action against suspicious operations.

He noted: “Once we hear anything, we do something.”

He highlighted the recent collapse of CBEX, a digital investment platform that allegedly defrauded Nigerians of over ₦1.3 trillion as a reminder of the urgency of SEC’s interventions.

CBEX was accused of luring unsuspecting investors with false claims of doubling their funds within a month and forging international affiliations.

The Director General assured the public that the SEC is determined to dismantle such fraudulent operations and ensure their promoters face justice.

The ISA 2025, which was signed into law by President Bola Ahmed Tinubu, marks a legislative milestone. For the first time, Ponzi schemes are clearly defined under Nigerian law, with promoters facing a minimum fine of ₦20 million and a jail term of at least 10 years.

The law also expands SEC’s regulatory powers to cover digital assets. All Virtual Asset Service Providers and Digital Asset Exchanges are now required to register with the Commission and operate within established guidelines.

According to Dr. Agama, this closes a long-standing legal loophole that previously allowed scammers to operate freely in the digital space.

“The SEC is capable, has the capacity, has the knowhow, and of course will be able to deal with anyone caught in this mess,” he declared.

As part of its broader reform efforts, the SEC has prioritized investor education. The Commission has launched educational campaigns across various platforms, including social media and podcasts, and is integrating capital market education into school curricula nationwide.

“We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” Dr. Agama said.

He advised Nigerians to take personal responsibility by verifying all investment opportunities directly with the SEC.

“Once it is too good to be true, it certainly is not true,” he warned.

Dr. Agama concluded by affirming the Commission’s resolve to provide a transparent and secure capital market environment for all.

“The capital market helps you to democratize wealth for everybody,” he said, emphasizing that the ISA 2025 represents a crucial step toward protecting investors and reinforcing market resilience.