The Securities and Exchange Commission (SEC), has warned celebrities, influencers and bloggers against promoting unregistered investment schemes, saying violators faced possible imprisonment.
In a statement yesterday, the commission explained that it was working closely with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force (NPF), and other relevant government bodies, to investigate and prosecute violators.
Director General of SEC, Dr. Emomotimi Agama, told Vanguard weekend that the commission could not help victims of the CBEX Ponzi that lost N1.3 trillion to recover their investment.
He 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’, he said.
Agama said SEC was 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 N20 million, and a 10-year jail term for promoters of such fraudulent schemes.
He emphasised the commission’s capacity and readiness to tackle Ponzi schemes, stating, ‘SEC is capable, has the capacity, has the know-how and, of course, will be able to deal with anyone caught in this mess’.
He noted that the SEC had dealt with similar schemes before and would 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 N1.3 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.
‘We will shut down their operations and the promoters will be made to face the full weight of the law’, Agama said.
He said the ISA 2025 also brought digital assets under SEC’s regulatory umbrella for the first time, recognising virtual assets as securities.
This inclusion, Agama said, meant that Virtual Asset Service Providers and Digital Asset Exchanges must register with SEC and comply with regulations, closing previous legal gaps exploited by fraudulent operators.
He said further: ‘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’.
SEC also urged Nigerians to verify any investment opportunity with the commission before committing funds, warning that once it was too good to be true, it certainly was not true.
The SEC DG emphasised that the commission remained 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.
