Nigeria’s Securities and Exchange Commission has raised fresh concerns over the growing spread of suspected Ponzi and unregistered investment schemes across social media platforms.
In a statement released on Thursday, the SEC warned Nigerians to be cautious of online investment offers being promoted through WhatsApp, Instagram, Telegram, Facebook, TikTok, and similar digital platforms.
According to the Commission, many of the schemes display the typical signs of Ponzi operations, including promises of unusually high or guaranteed returns.
It also noted that some of the operators mix legitimate investment services with illegal fundraising activities, making it harder for unsuspecting members of the public to detect fraud.
The SEC advised Nigerians not to invest in any platform or scheme that is not officially registered with the Commission.
It also warned against relying on investment advice shared online by individuals or organisations that are not licensed to operate in the Nigerian capital market.
“Members of the public should avoid participating in unregistered investment platforms promising unrealistic returns,” the Commission stated, warning that such schemes could lead to serious financial losses.
The regulator reminded investors that under the Investments and Securities Act, 2025, only entities registered by the SEC are legally permitted to offer investment services, provide financial advisory services, or solicit funds from the public.
To protect themselves, Nigerians were urged to verify the registration status of any company or platform before investing.
The warning comes amid a surge in online financial schemes targeting social media users with promises of quick profits and low-risk investments.
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