SEC Warns Nigerians Against Investment Schemes Promoted on Social Media
The Securities and Exchange Commission (SEC) has issued a warning to Nigerians regarding the increasing promotion of unregistered online investment schemes on social media platforms. The alert, contained in a public notice dated May 8, 2026, highlights the risks associated with these schemes, which often promise unrealistic returns.
Rising Threat of Online Investment Scams
The SEC observed that these investment schemes are heavily promoted on platforms such as WhatsApp, Instagram, TikTok, Telegram, and Facebook. Many of them exhibit characteristics of Ponzi or prohibited investment schemes. The Commission emphasized that investors face significant financial losses, fraud, and other dangers when engaging with unregistered platforms.
Only Registered Entities Authorized
The SEC reiterated that only entities duly registered with the Commission are permitted to offer investment services in Nigeria. The public is advised to verify the registration status of any investment platform before depositing funds. The Commission's dedicated portal provides a list of registered fintech operators and capital market operators.
Advice to the Public
The SEC advised Nigerians to refrain from investing in schemes promising guaranteed or unrealistic returns. Additionally, the public should not rely on investment advisories circulated by unregistered persons or entities. The Commission warned that such advisories could expose investors to fraudulent schemes.
Previous Warnings
In a related development, the SEC had earlier warned against an online investment platform called Voya Investment Management (VIM), which falsely claimed to be supervised by the Commission. The regulator urged investors to always verify the credentials of any investment platform.
The SEC continues to monitor the capital market and take action against unauthorized operators to protect investors.
