The SEC has issued a strong call to action to all Nigerians, urging them to report any investment plan they suspect of being illegal so that the agency can investigate and take appropriate action.
The warning about the dangers of ponzi investment schemes to the growth of the capital market was published by the Commission in a notice to the investing public on Thursday.
Ponzi scams, unlawful investment operations, and platforms for digital assets that have not been registered are becoming more dangerous, and the commission has issued a warning to the public about this.
SEC detailed the ongoing practice of con artists taking advantage of naive investors by promising them huge returns on their money. These con artists frequently used digital assets to give the impression that their schemes were legitimate when in fact they were not.
It reads, “The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk.
“These include unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes, without subjecting themselves to the prescribed processes for obtaining the prior approval of the SEC.
“The SEC reiterates in this regard that ‘If it sounds too good to be true, it likely is.”
Investors are encouraged to visit the SEC’s website at https://sec.gov.ng/cmos to check the registration status of the company or individual providing the investment, as part of their due diligence process, according to the commission.
Section 196 (3) of the Investments and Securities Act, 2025 makes it a crime to promote or run an unregistered or illegal scheme. The SEC has stated its intention to find and prosecute violators to the utmost degree permitted by law.