The Securities and Exchange Commission has warned Nigerians to be wary of online investment platforms promising unrealistic returns, describing them as potential traps for unsuspecting investors.
Director-General of the Commission, Emomotimi Agama, issued the warning during an interview on Channels Television’s Business Morning programme on Tuesday.
Agama stressed that registration with the SEC remains the most reliable way to confirm the legitimacy of any investment scheme.
“If it is too good to be true, then it is not true. Nigerians must always verify whether an investment firm is licensed by the SEC, not just registered with the Corporate Affairs Commission,” he said.
According to him, several fraudulent operators use mouth-watering offers to lure victims.
He disclosed that the Commission has already released over 85 public advisories alerting citizens about illegal schemes.
Citing Section 3(a) of the Investment and Securities Act 2025, Agama reiterated the SEC’s mandate to regulate businesses in the capital market.
He encouraged members of the public to verify the status of firms through SEC offices in Abuja, Lagos, Kano, and Port Harcourt, or through upcoming digital verification platforms.
“When people promise what is ordinarily impossible, that is fraud. Nigerians must ask questions and verify with us,” Agama added.
His remarks come months after the Economic and Financial Crimes Commission published a list of 58 unregistered Ponzi operators, including Wales Kingdom Capital, MBA Trading & Capital Investment Limited, Ovaioza Farm Produce Storage Limited, and Chinmark Homes. While some of these operators have been convicted, many others are still facing prosecution.
The SEC boss urged Nigerians to remain vigilant, stressing that investors must prioritize due diligence to avoid falling prey to fraudulent schemes.