The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerian social media influencers, celebrities, and bloggers, urging them to stop promoting unregistered investment platforms or face serious legal consequences.
This fresh caution came following the recent enactment of the Investments and Securities Act 2025, which was signed into law by President Bola Ahmed Tinubu.
The new law, among other things, gives a clear definition of Ponzi schemes and grants the SEC stronger powers to clamp down on their promoters. Under the law, anyone found guilty of promoting these illegal schemes could face a minimum fine of N20 million and up to 10 years in prison.
Speaking about the developments, SEC’s Director-General, Emomotimi Agama, stated that the Commission is now collaborating closely with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force, to track, investigate, and prosecute violators.
“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.
He also noted that the collapse of CBEX, a digital investment platform accused of scamming Nigerians out of over N1.3 trillion, has pushed the Commission to intensify its fight against Ponzi operations. According to him, CBEX deceived investors by promising unrealistic returns and claiming false partnerships with international firms.
“We will shut down their operations and the promoters will be made to face the full weight of the law,” Agama stated.
The new law also brings digital and virtual assets under the SEC’s regulatory umbrella. This means that Digital Asset Exchanges and Virtual Asset Service Providers must now register with the Commission and operate under its guidelines.
Agama noted that education is an important part of the SEC’s efforts to safeguard investors. “We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” he said, adding that the Commission is taking its investor education campaigns to schools and universities.
The SEC urged Nigerians to always check whether any investment platform is registered before putting their money into it. “Once it is too good to be true, it certainly is not true,” Agama warned.
In addition, he shared that the SEC has set up dedicated departments to monitor market activities and quickly detect signs of fraudulent behavior. “We have a monitoring department. We also do onsite inspections. Once we hear anything, we do something,” he said.
Agama reaffirmed the Commission’s commitment to investor safety and market stability. “The capital market helps you to democratise wealth for everybody. The ISA 2025 thus represents a significant step forward in protecting Nigerian investors and fostering a resilient financial market,” he concluded.
