The Securities and Exchange Commission (SEC) has issued a stern warning to social media influencers and bloggers about endorsing unregistered investment schemes.
In a statement released on Sunday, SEC’s Director-General, Emomotimi Agama, emphasized the commission’s commitment to working closely with agencies like the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other relevant authorities to identify and prosecute those who violate the law.
Agama pointed out that the newly implemented Investments and Securities Act (ISA) 2025 specifically targets promoters of unregistered investment platforms. He urged influencers and bloggers to refrain from promoting such schemes, warning them of potential legal consequences.
“The law extends to influencers and bloggers who endorse fraudulent schemes, with penalties that may include imprisonment,” Agama stated. “This is a clear warning to those involved in promoting unregistered entities—stop immediately or face legal action.”
He further highlighted that the SEC has the necessary resources and legal authority to tackle Ponzi schemes and ensure the safety of investors. “We’ve successfully addressed similar fraudulent ventures in the past and will continue using the ISA 2025 to protect investors and strengthen the capital market,” he said.
Agama also referenced the recent downfall of CBEX, a digital investment platform that allegedly defrauded Nigerians of over N1.3 trillion, as a stark reminder of the dangers of unregulated schemes. He described CBEX’s promises of quick returns and fake global partnerships as clear signs of fraud.
“The collapse of CBEX emphasizes the urgent need for this crackdown. We are taking steps to shut down their operations, and those responsible will face full legal action,” Agama added.
He urged Nigerians to verify any investment opportunity with the SEC before committing funds, advising that if an offer sounds too good to be true, it likely is.
Agama reassured the public that the SEC is dedicated to investor protection and the development of a robust financial market. He also encouraged citizens to seek guidance from licensed professionals and avoid falling for get-rich-quick schemes.
“The SEC has established specialized departments to monitor market activities and conduct inspections aimed at detecting irregularities early on,” he said. “These proactive measures are crucial in preventing large-scale fraud like what happened with CBEX.”
Agama concluded by stressing the importance of the ISA 2025 as a significant step toward securing Nigeria’s investment environment and fostering a resilient financial market.
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