The Securities and Exchange Commission has warned Nigerians against investing in unregistered online investment schemes being promoted across social media and digital platforms.
In a public notice issued by the Commission, the SEC said its attention had been drawn to the increasing promotion of online investment platforms on applications and websites such as WhatsApp, Instagram, Telegram, Facebook, TikTok, and other digital channels.
According to the Commission, many of the schemes exhibit characteristics of Ponzi or prohibited investment operations, while some operators also provide unauthorised investment services to members of the public.
The SEC advised Nigerians to refrain from participating in investment platforms promising unrealistic or guaranteed returns, warning that such schemes could expose investors to fraud and significant financial losses.
The Commission further cautioned the public against relying on investment advice circulated online by individuals or entities not registered with the SEC.
It stated that under the provisions of the Investments and Securities Act 2025, only entities registered by the Commission are authorised to promote investment services, provide investment advisory services, or solicit funds from the public within the Nigerian capital market.
The SEC urged prospective investors to verify the registration status of any company, platform, or entity offering investment opportunities before committing funds.
According to the notice, verification can be carried out through the Commission’s fintech operators portal and the Capital Market Operators portal on the SEC website.
