The Securities and Exchange Commission,SEC, has warned celebrities, bloggers and social media influencers to stop promoting unregistered investment schemes.
The regulatory body issued the warning under the newly enacted Investments and Securities Act. 2025 as part of broader efforts to protect investors and sanitise Nigeria’s financial space.
Speaking in Abuja, SEC Director General Dr Emomotimi Agama said the law now empowers the Commission to prosecute individuals promoting fraudulent investment platforms, especially on social media.
“The law targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment,” he said. “We warn such persons to desist from promoting unregistered entities.”
The new ISA introduces stringent penalties for Ponzi scheme operators, including a minimum fine of N20 million and a 10-year jail term.
Agama disclosed that the SEC is working with the Economic and Financial Crimes Commission, the Nigerian Police Force, and other agencies to dismantle illegal financial networks.
This development follows the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion through promises of unrealistic returns and fake global affiliations.
READ ALSO: Faces behind ₦1.3tn CBEX scam unmasked
“The Commission will shut down their operations, and the promoters will face the full weight of the law,” Agama said.
In a key reform, the ISA 2025 brings digital assets under the SEC’s regulatory control. All virtual asset service providers and digital asset exchanges are now required to register with the Commission.
This move aims to address regulatory loopholes that previously allowed Ponzi-like schemes to thrive under the guise of cryptocurrency and digital finance.
Beyond enforcement, the SEC is rolling out an education campaign to empower Nigerians to recognise and avoid fraudulent schemes.
Efforts include podcasts, digital outreach, and integrating capital market education into school curriculums.
“If it sounds too good to be true, it probably is,” Agama stated, affirming the SEC’s commitment to investor protection and proactive monitoring of financial activities.
The guardian.ng
