SEC Warns Influencers, Bloggers Against Promoting Unregistered Schemes

The Securities and Exchange Commission (SEC) has issued a warning to influencers and bloggers, cautioning them against promoting unregistered investment schemes.

The Commission emphasized that it is working closely with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other relevant government bodies, to investigate and prosecute violators.

Director General of the SEC, Dr. Emomotimi Agama, stated that the Investments and Securities Act (ISA) 2025 specifically targets promoters of unregistered schemes, urging celebrities, social media influencers, and bloggers to steer clear of endorsing such ventures to avoid legal consequences.

“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment. We are therefore using this medium to warn such persons to desist from promoting unregistered entities”.

Agama said the SEC is intensifying efforts to combat Ponzi schemes following the enactment of the Investments and Securities Act (ISA) 2025, a landmark law signed by President Bola Ahmed Tinubu.

The new legislation explicitly defines Ponzi schemes and introduces stringent sanctions, including a minimum fine of ₦20 million and a 10-year jail term for promoters of such fraudulent schemes.

Dr. Agama emphasized the Commission’s capacity and readiness to tackle Ponzi schemes, stating, “SEC is capable, has the capacity, has the knowhow and of course will be able to deal with anyone caught in this mess”.

He highlighted that the SEC has dealt with similar schemes before and will continue to do so, leveraging the new powers granted by ISA 2025 to protect investors and develop the market.

“The recent collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion, has underscored the urgency of this crackdown. CBEX promised unrealistic returns, doubling investments within a month, and deceived many with false claims of global affiliations”

Dr. Agama noted, “We will shut down their operations and the promoters will be made to face the full weight of the law”.

He said the ISA 2025 also brings digital assets under the SEC’s regulatory umbrella for the first time, recognizing virtual assets as securities.

This inclusion, Agama said,  means that Virtual Asset Service Providers and Digital Asset Exchanges must register with the SEC and comply with regulations, closing previous legal gaps exploited by fraudulent operators.

According to him, “Education is a key pillar in the SEC’s strategy. The Commission has launched podcasts, social media campaigns, and is integrating capital market education into schools and universities.

“We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes”.

The SEC also urged Nigerians to verify any investment opportunity with the Commission before committing funds, warning that once it is too good to be true it certainly is not true”.

The SEC DG emphasised that the Commission remains committed to protecting investors in line with its twin objectives of investor protection and market development and urged Nigerians to be cautious, consult professionals before investing, and to avoid schemes promising unrealistic returns.

“The SEC has also established departments for monitoring market activities and conducting inspections to detect irregularities early. We have a monitoring department, we also do onsite inspections, once we hear anything we do something. These proactive measures aim to prevent the recurrence of massive frauds like CBEX.

“The Commission is focused on democratizing wealth through a safe and transparent capital market. We are committed to providing a safe investment environment, the capital market helps you to democratize wealth for everybody. The ISA 2025 thus represents a significant step forward in protecting Nigerian investors and fostering a resilient financial market”, he added.