The Securities and Exchange Commission (SEC) has issued a stern warning to celebrities, social media influencers, and bloggers to cease promoting unregistered investment schemes, stating that those who violate this directive could face imprisonment. In a statement released yesterday, the commission emphasized its close collaboration with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other relevant government bodies, to investigate and prosecute individuals involved in such activities.
The Director General of SEC, Dr. Emomotimi Agama, speaking to Vanguard over the weekend, clarified that the commission lacks the ability to assist victims of the collapsed CBEX Ponzi scheme in recovering the staggering ₦1.3 trillion they lost. He pointed out that the newly enacted Investments and Securities Act (ISA) 2025 specifically targets promoters of unregistered schemes, urging celebrities, influencers, and bloggers to refrain from endorsing such ventures to avoid severe legal repercussions.
“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,’’ Dr. Agama stated.
He further explained that SEC is intensifying its efforts to combat Ponzi schemes following the enactment of the ISA 2025, a significant piece of legislation signed into law by President Bola Ahmed Tinubu. This new law explicitly defines Ponzi schemes and introduces stringent sanctions, including a minimum fine of ₦20 million and a potential 10-year jail term for those who promote these fraudulent operations.
Dr. Agama asserted the commission’s capability and readiness to tackle Ponzi schemes, affirming, “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 the SEC’s past experience in handling similar schemes and its commitment to leveraging the enhanced powers granted by ISA 2025 to safeguard investors and foster market development.
The recent downfall of CBEX, a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion, has highlighted the critical need for this intensified crackdown. Dr. Agama recounted how “CBEX promised unrealistic returns, doubling investments within a month, and deceived many with false claims of global affiliations.” He assured that “We will shut down their operations and the promoters will be made to face the full weight of the law.’’
Dr. Agama also highlighted that the ISA 2025 has, for the first time, brought digital assets under the regulatory purview of the SEC, recognizing virtual assets as securities. This inclusion mandates that Virtual Asset Service Providers and Digital Asset Exchanges must register with the SEC and adhere to its regulations, effectively closing legal loopholes that fraudulent operators previously exploited.
Furthermore, Dr. Agama emphasized the importance of education in the SEC’s strategy. He noted the launch of podcasts and social media campaigns, as well as the integration of capital market education into school and university curricula. “We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” he said.
The SEC urged Nigerians to always verify any investment opportunity with the commission before committing their funds, cautioning that if an investment offer appears too good to be true, it most likely is.
The SEC Director General reiterated the commission’s unwavering commitment to investor protection and market development, its core objectives. He advised Nigerians to exercise caution, seek professional advice before making investment decisions, and to avoid schemes that promise unrealistically high returns.
Dr. Agama added, “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.”
In conclusion, Dr. Agama stated, “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.”
