Saturday, May 16, 2026 - The Securities and Exchange Commission has warned Nigerians against investing in unregistered online investment schemes being promoted across social media platforms, cautioning that many operate like Ponzi schemes.
In a public notice shared on its X handle on Thursday, May
14, the commission said it had observed an increase in fraudulent investment
promotions on platforms including WhatsApp, Instagram, Telegram, Facebook and
TikTok. “The attention of the Securities and Exchange Commission has been drawn
to the increasing promotion of unregistered online investment schemes on social
media applications and websites,” the SEC stated.
According to the commission, many of the schemes lure
unsuspecting Nigerians with promises of unrealistic or guaranteed returns.
“Many of these investment schemes exhibit characteristics of
Ponzi or prohibited investment schemes, while some operators of such schemes
also provide unauthorised investment services to members of the public,” the
notice added.
The SEC stressed that several of the platforms currently
operating online are neither registered nor authorised to operate within
Nigeria’s capital market. The commission also warned Nigerians against relying
on investment advice from individuals or organisations not licensed by the
regulator.
“Only SEC-registered operators are authorised to provide
investment and advisory services in Nigeria,” it said. The regulator advised
members of the public to verify the registration status of any investment
platform or company before committing funds.
It further warned that schemes promising unusually high or
guaranteed profits often expose investors to fraud and severe financial losses.
The latest warning comes amid growing concerns over the rise of digital
financial scams and online Ponzi schemes targeting Nigerians through social
media and internet-based platforms.
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