The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has raised alarm over the rising cases of digital assets fraud in Nigeria, warning that such criminal activities are eroding trust in the country’s capital markets and posing significant threats to financial stability and investor confidence.

Speaking during an event to mark African Union Anti-Corruption Day in Abuja, themed “Understanding Virtual Assets and Investment Fraud”, Dr. Agama noted that the explosive growth of digital innovation—especially in blockchain technology, virtual currencies, and digital tokens—has created fertile ground for sophisticated fraudsters targeting unsuspecting investors.
“Today, as digital innovation transforms financial systems, we face new challenges, particularly the rise of virtual asset fraud and sophisticated investment scams exploiting unsuspecting investors,” Dr. Agama said. “These threats undermine market integrity, erode trust, and divert resources meant for sustainable development.”
He emphasized that digital asset scams, including Ponzi schemes disguised as crypto investments, are growing at an alarming rate and have become a top concern for market regulators across Africa. Many of these schemes operate outside the regulatory net, preying on citizens lured by the promise of high returns.
In response to this growing threat, Dr. Agama pointed to the Investment and Securities Act (ISA) 2025, which introduces a robust legal framework to regulate digital assets such as cryptocurrencies, digital tokens, and blockchain-based investment products. Under the Act, the SEC is the primary regulatory body responsible for overseeing virtual assets that qualify as securities or investment instruments.

According to the SEC DG, Virtual Asset Service Providers (VASPs)—including crypto exchanges, custodians, and brokers—must now obtain regulatory approval, meet minimum capital requirements, implement strong cybersecurity protocols, and adhere to governance standards.
He added that all platforms offering digital assets must disclose investment risks, including volatility, fraud, and regulatory uncertainties, and are subject to strict penalties for market manipulation, insider trading, and unlawful investment schemes.
Dr. Agama said the SEC is actively enhancing its investor education initiatives to help Nigerians recognize fraudulent schemes and make informed investment decisions. He also emphasized the importance of regional and international cooperation to tackle cross-border illicit financial flows tied to virtual asset crimes.
“The SEC remains committed to issuing updated guidelines and enforcing compliance in order to foster a secure digital asset ecosystem. We call on all stakeholders—governments, financial institutions, civil society, and citizens—to work together in promoting transparency, accountability, and ethical investment practices,” he added.
Also speaking at the event, the Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, described virtual asset fraud as one of the fastest-growing threats to Nigeria’s economic and national security.
“Another rising criminal engagement that has the potential to outpace money laundering is virtual assets and investment scams,” he warned, citing ongoing investigations into fraudulent digital investment platforms operating across Nigeria.
While digital assets offer vast potential for innovation and financial inclusion, Nigeria’s capital market regulators are increasingly focused on balancing technological advancement with strict oversight. The SEC’s renewed push for compliance under ISA 2025 is aimed at restoring investor confidence and ensuring that digital assets contribute meaningfully to the country’s economic development.
As Nigeria accelerates its digitization agenda, regulatory vigilance and public awareness will be key to safeguarding the integrity of the capital market and preventing the country from becoming a haven for crypto-related fraud.