The Securities and Exchange Commission (SEC) has issued a strong public warning against Silverkuun Investment Cooperative Society and Silverkuun Limited, labelling the firms as unregistered entities illegally operating in Nigeria’s capital market.
In a detailed circular released on Wednesday, the regulatory body cautioned Nigerians to avoid engaging with the aforementioned organisations, which it said have been falsely parading themselves as legitimate investment advisers and fund managers.
“The attention of the Securities and Exchange Commission (‘the Commission’) has been drawn to the activities of Silverkuun Investment Cooperative Society/Silverkuun Limited which holds itself out as an investment adviser/fund manager,” the statement read.
The Commission emphasized that Silverkuun is not licensed to operate in any capacity in the Nigerian capital market and is therefore in violation of existing regulatory requirements.
The SEC underlined the risks of transacting with unregistered entities, warning that such dealings expose investors to potential fraud, lack of legal protection, and total loss of funds.
“The Commission uses this medium to reiterate that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to financial risk including fraud and potential loss of investment,” it noted.
Investors were urged to always verify the registration status of any firm offering investment services by consulting the official SEC portal: www.sec.gov.ng. The Commission has consistently advised the public to be wary of high-yield investment programs that lack proper registration or regulatory oversight.
The Director-General of the SEC, Dr. Emomotimi Agama, in a stern response, declared that the agency will not hesitate to shut down unlicensed operators and prosecute those behind them.
“We will shut down their operations, and the promoters will be made to face the full weight of the law,” Agama warned.
The move aligns with the SEC’s broader strategy under the new Investment and Securities Act (ISA) 2025, which strengthens regulatory oversight across both traditional and digital investment sectors.
Under ISA 2025, digital assets and virtual asset service providers fall within SEC’s expanded regulatory purview. This reform aims to curb the proliferation of online Ponzi schemes and deceptive investment platforms masquerading as cryptocurrency exchanges or asset managers.
“In a major reform, ISA 2025 officially brings digital assets under the SEC’s regulatory purview, defining them as securities and mandating registration for all virtual asset service providers and digital asset exchanges,” Agama added.
This development marks a significant policy shift, compelling operators in the digital finance space to comply with new licensing and reporting standards. Companies offering services such as crypto trading, blockchain-based investments, or asset tokenization must now be fully registered or risk legal penalties.
To complement enforcement efforts, the SEC is also enhancing investor education initiatives. Dr. Agama disclosed that new public enlightenment campaigns — including interactive podcasts, digital media outreach, and curriculum integration in schools and universities — are underway to improve financial literacy.
“This is part of our strategy to equip Nigerians with the knowledge to detect and avoid dubious investments,” he explained.
By promoting market awareness, the SEC aims to build resilience among everyday investors and reduce the susceptibility of Nigerians to fraudulent schemes.
Silverkuun is not the first company to come under the SEC’s radar. The Commission has a history of cracking down on Ponzi schemes and illegal cooperatives, with similar warnings previously issued against companies like MBA Forex, Chinmark Group, and others that lured unsuspecting investors with promises of unrealistic returns.
Recent statistics from the SEC reveal that over 60% of financial scams reported in Nigeria over the last three years originated from unlicensed schemes. Many of these cases involved sophisticated online platforms, making it difficult for victims to seek recourse once funds were lost.
In its advisory, the SEC outlined three key steps for investors to avoid falling victim:
Verify registration status on the SEC website.
Beware of guaranteed high returns or pressure to “invest now.”
Report suspicious companies or individuals to the SEC or law enforcement immediately.
As Nigeria’s financial landscape evolves, the SEC’s latest warning highlights a growing concern over rogue investment firms exploiting regulatory gaps. The case of Silverkuun underscores the urgent need for vigilance, education, and strict enforcement to safeguard investor funds.