The Securities and Exchange Commission has cautioned influencers, bloggers, and celebrities, urging them to avoid endorsing unregistered investment platforms or face legal repercussions.
This follows the implementation of the Investments and Securities Act 2025, enacted by President Bola Tinubu, which explicitly outlines Ponzi schemes and grants the SEC authority to enforce penalties, including a minimum fine of ₦20 million and a 10-year prison term for promoters.
The SEC’s Director-General, Emomotimi Agama, said the Commission is collaborating with the Economic and Financial Crimes Commission, the Nigeria Police Force, and other law enforcement agencies to investigate and prosecute offenders
“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment. We are therefore using this medium to warn such persons to desist from promoting unregistered entities,” Agama said
He specifically said the SEC is intensifying its crackdown on Ponzi operators following the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3tn. CBEX reportedly lured investors with promises of unrealistic returns and false claims of global affiliations.
“We will shut down their operations, and the promoters will be made to face the full weight of the law,” Agama stated.
The SEC Director-General emphasized that the ISA 2025 now places digital assets under the commission’s regulatory jurisdiction for the first time. He clarified that virtual assets have been formally classified as securities, requiring Virtual Asset Service Providers and Digital Asset Exchanges to register with the SEC and adhere to applicable regulations.
Agama emphasized that education remains a key part of the SEC’s strategy to protect Nigerian investors. “We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” he said, adding that the commission is also pushing capital market education into schools and universities.
The commission advised the public to always verify the registration status of any investment scheme with the SEC before parting with their funds. “Once it is too good to be true, it certainly is not true,” he warned.
He also revealed that the SEC has established specialized departments to monitor market activities, conduct inspections, and detect early signs of fraud. “We have a monitoring department. We also do on-site inspections. Once we hear anything, we do something,” he said.
Agama reiterated the SEC’s commitment to investor protection and market development. “The capital market helps you to democratize wealth for everybody. The ISA 2025 thus represents a significant step forward in protecting Nigerian investors and fostering a resilient financial market,” he said.
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