Abuja, April 25, 2025 – The Securities and Exchange Commission (SEC) has urged the public to report any suspected illegal investments scheme for proper investigation and necessary action.
SEC gave the advice on Thursday in a public notice.
It warned that Ponzi investment schemes posed great danger to the growth of the capital market, highlighting the growing threats and risks posed by Ponzi schemes, illegal investment operations, and unregistered digital assets platforms.
The notice reads in part: “The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk.
“These include unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes, without subjecting themselves to the prescribed processes for obtaining the prior approval of the SEC.
“The SEC reiterates in this regard that ‘If it sounds too good to be true, it likely is”, it added
The commission urged potential investors to conduct thorough due diligence before investing and verify the registration status of the company or individual offering the investment through the SEC’s website https://sec.gov.ng/cmos.
It said Section 196 (3) of the Investments and Securities Act, 2025 had criminalised the promotion and operation of prohibited/unregistered investment schemes, and warned that violation of this law is punishable upon conviction by a fine of not less than N20 million or a prison term of 10 years or both.
