The Securities and Exchange Commission (SEC) has issued a stern warning to celebrities, bloggers and social media influencers against promoting unregistered investment schemes, as the regulatory body intensifies efforts to protect investors under the newly enacted Investments and Securities Act (ISA) 2025.
The SEC said it is collaborating with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other relevant bodies to investigate, prosecute and dismantle illegal financial operations that have plagued the country’s investment landscape.
Speaking in Abuja, the Director General of the SEC, Dr Emomotimi Agama, stressed that the ISA 2025 not only strengthens the Commission’s regulatory powers but also holds accountable those who promote unlicensed schemes, especially across social media platforms.
“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.
The new law defines and criminalises Ponzi operations more clearly than ever before, introducing a minimum N20 million fine and a 10-year jail term for perpetrators.
Agama reaffirmed the SEC’s commitment to investor protection, highlighting that the Commission has the tools, expertise and authority to go after fraudsters exploiting regulatory loopholes. The recent collapse of CBEX, a digital investment platform alleged to have swindled Nigerians out of over N1.3 trillion, served as a chilling reminder of the damage caused by unchecked investment frauds. CBEX promised unrealistic returns, often doubling investments within weeks while touting non-existent global affiliations.
“We will shut down their operations and the promoters will be made to face the full weight of the law,” Agama warned. 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 (VASPs) and digital asset exchanges.
This development aims to close the regulatory vacuum that has allowed many Ponzi-style platforms to thrive under the guise of cryptocurrency and digital finance.
Agama also emphasised the Commission’s education-focused strategy to combat fraud. Through podcasts, digital campaigns, and the introduction of capital market literacy in schools and universities, the SEC aims to equip Nigerians with the knowledge to detect and avoid dubious investments.
“We educate and enlighten Nigerians on the dangers of investing in unregistered schemes. If it sounds too good to be true, it probably is,” he added. Beyond public awareness, the SEC has ramped up internal monitoring and enforcement. Dedicated departments now track suspicious activities, conduct regular inspections and respond swiftly to red flags.
THE GUARDIAN
