The Securities and Exchange Commission has warned Nigerians against investing in unregistered online schemes being promoted across social media platforms, cautioning that many operate as Ponzi schemes designed to defraud unsuspecting investors.
In a public notice dated May 8, 2026, the Commission said several online investment platforms advertising guaranteed or unrealistic returns are neither registered nor authorised to operate in Nigeria’s capital market.
According to the SEC, the schemes are aggressively marketed on platforms including WhatsApp, Instagram, TikTok, Telegram, and Facebook.
“The attention of the Securities and Exchange Commission has been drawn to the increasing promotion of unregistered online investment schemes on social media applications and websites,” the Commission stated.
The regulator noted that many of the operators display characteristics associated with Ponzi and prohibited investment schemes, while some also provide unauthorised investment advisory services to the public.
The Commission advised Nigerians to avoid any investment platform promising guaranteed or unusually high returns, warning that such schemes often expose investors to fraud and severe financial losses.
It also cautioned the public against relying on investment advice from unlicensed individuals or companies, stressing that only SEC-registered operators are permitted to offer investment and advisory services within Nigeria’s capital market.
The SEC urged investors to verify the registration status of investment companies and platforms through its official databases before committing funds.
The latest warning comes amid intensified regulatory action against suspected fraudulent investment operators across the country.
In recent months, the SEC has issued alerts against several firms accused of operating illegally.
One of the companies previously flagged was Glorious Wealth Fund, which the Commission described as an unauthorised investment scheme despite promoting opportunities linked to Nigerian stocks and financial instruments.
The regulator also warned Nigerians against dealing in Shalom Coin, a digital token promoted online with speculative profit claims but lacking regulatory approval.
In another case, the SEC cautioned the public against transacting with Silverkuun Investment Cooperative Society, stating that the company was not licensed to operate as an investment adviser or fund manager in Nigeria.
The Commission reiterated that under the Investments and Securities Act (ISA) 2025, only registered entities are authorised to solicit investments or manage funds in Nigeria’s capital market.
The SEC said it remains committed to protecting investors and tackling fraudulent financial activities, adding that public awareness and due diligence remain critical in the fight against investment scams.
