Nigeria's Securities Regulator Cautions Citizens About Surge in Online Investment Scams on Social Media Platforms

The Securities and Exchange Commission (SEC) has issued a warning to Nigerians, urging them to exercise caution when investing in online schemes that are not registered, as many of these platforms exhibit characteristics of Ponzi schemes and are being heavily promoted on social media.

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A public notice dated May 8, 2026, was published on the Commission's official communication channels, highlighting the risks associated with unregistered online investment schemes that promise unrealistic returns.

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Several online platforms offering guaranteed or unrealistic returns have been identified by the SEC as neither registered nor authorized to operate within Nigeria's capital market, with many being promoted on digital platforms such as WhatsApp, Instagram, Telegram, Facebook, TikTok, and other social media channels.

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The SEC has stated that its attention has been drawn to the increasing promotion of unregistered online investment schemes on various social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok, and other digital platforms.

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Many of these schemes display features commonly associated with Ponzi or prohibited investment arrangements, while some operators also provide unauthorized investment services to unsuspecting members of the public, according to the SEC.

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The Commission has warned that investors who invest in such platforms risk losing their funds to fraudulent operators, emphasizing that promises of unusually high or guaranteed returns should be viewed with skepticism.

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Nigerians have been advised by the SEC to avoid participating in unregistered online investment schemes and to refrain from relying on financial advice from unlicensed individuals or entities.

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Only operators registered with the SEC are legally permitted to provide investment and advisory services within Nigeria's capital market, according to the regulator.

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The Commission has further advised prospective investors to verify the registration status of any investment company, platform, or promoter before committing funds, to avoid potential losses.

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The SEC has stated that the investing public should confirm the status of companies and entities offering investment opportunities through the Commission's dedicated verification portal before transacting with them.