The Securities and Exchange Commission (SEC) of Nigeria has issued a stern warning to celebrities, influencers, and bloggers regarding the promotion of unregistered and fraudulent investment schemes. The SEC has emphasized that such actions are now subject to strict penalties, including potential jail terms and heavy fines under the newly signed Investments and Securities Act (ISA) 2025.
According to a statement from the SEC, the Commission is working closely with law enforcement agencies like the Economic and Financial Crimes Commission (EFCC) and the Nigerian Police Force to investigate and prosecute those involved in promoting unlawful investment opportunities. Dr. Emomotimi Agama, the SEC’s Director General, pointed out that the ISA 2025 explicitly targets the promoters of fraudulent schemes, including influencers and bloggers, who now face significant legal consequences.
“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment,” Dr. Agama warned. The SEC’s new approach highlights the agency’s focus on protecting investors and developing a secure capital market in Nigeria.
The Commission is also taking proactive steps to monitor market activities and identify suspicious operations swiftly. Dr. Agama mentioned that new departments have been created to carry out onsite inspections, ensuring prompt action in tackling fraudulent schemes. This move comes after the collapse of CBEX, a digital investment platform that allegedly defrauded Nigerians of over N1.3 trillion.
The ISA 2025, a landmark legislation signed by President Bola Ahmed Tinubu, includes provisions for clear definitions of Ponzi schemes. Promoters of such schemes now face penalties, including a fine of ₦20 million and a minimum 10-year prison sentence.
Additionally, the law now brings digital assets under the oversight of the SEC. This means that all Virtual Asset Service Providers and Digital Asset Exchanges must register with the Commission and operate within the established guidelines, closing a loophole that previously allowed scammers to exploit digital investors.
Dr. Agama reassured the public of the SEC’s capacity to handle fraudulent operators, stating, “The SEC is capable, has the capacity, has the knowhow, and of course will be able to deal with anyone caught in this mess.” He also underscored the importance of investor education and encouraged Nigerians to verify investment opportunities before committing their funds.
The SEC has launched multiple educational campaigns to raise awareness about the dangers of unregistered investment schemes. These initiatives include podcasts, social media campaigns, and integrating capital market education into school curricula to ensure Nigerians are better informed.
In closing, Dr. Agama reminded the public that “Once it is too good to be true, it certainly is not true.” The SEC’s message is clear: the era of unchecked exploitation of Nigerian investors is over.
Article updated 1 month ago. Content is written and modified by multiple authors.
