Nigeria SEC raises alarm on digital Ponzi scams

Nigerians about to face rising online investment scams

NIGERIA: The Securities and Exchange Commission(SEC) has warned Nigerians about unregistered online investment platforms. The commission said many of these schemes operate on social media and show signs of ‘Ponzi’ fraud.

The SEC issued this warning in a public notice released on May 8, 2026. It shared the message through its official communication channels.

Fake investment schemes on social media:

The commission said many fake investment platforms promise high and guaranteed returns. However, these platforms do not have approval to operate in Nigeria’s capital market.

These schemes spread quickly on platforms like WhatsApp, Instagram, Facebook, Telegram, and TikTok. The SEC said operators use these apps to attract unsuspecting investors.

Risk for investors:

According to the “All Africa reports” SEC warned that people who invest in such platforms risk losing their money. It said promises of quick and high profits often act as warning signs of fraud.

The commission also said only registered companies can legally offer investment services in Nigeria. It advised the public to stay alert and avoid unlicensed operators.

The SEC urged Nigerians to check the registration status of any investment company before investing. It encouraged people to use its official verification portal for safety.

The commission also advised investors not to trust financial advice from unlicensed individuals or unknown online sources.

The SEC continues to warn Nigerians about rising online investment scams. It urged the public to stay cautious, verify all investment platforms, and avoid schemes that promise unrealistic profits.