The Securities and Exchange Commission (SEC) has warned Nigerians against investing in unregistered online investment schemes online.
The commission stated that many of such schemes being promoted on social media platforms and websites operate like Ponzi schemes, and could fold up without notice.
In a public notice posted on the commission’s X handle on Thursday, the SEC said it had observed a growing trend of fraudulent investment promotions across digital platforms, including WhatsApp, Instagram, Telegram, Facebook, and TikTok.
“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 SEC stated.
According to the commission, many of the schemes promise unrealistic or guaranteed returns to attract unsuspecting members of the public.
“Many of these investment schemes exhibit characteristics of Ponzi or prohibited investment schemes, while some operators of such schemes also provide unauthorised investment services to members of the public,” it said.
The SEC stressed that several of the platforms currently operating online are neither registered nor authorised to function within Nigeria’s capital market.
The regulator warned Nigerians against relying on investment advice from individuals or organisations that are not licensed by the commission.
“Only SEC-registered operators are authorised to provide investment and advisory services in Nigeria,” the notice added.
The commission advised members of the public to exercise caution before investing and urged them to verify the registration status of any investment platform or company before committing funds.
It further warned that schemes promising unusually high or guaranteed profits often expose investors to fraud and severe financial losses.
 has warned Nigerians against investing in unregistered online investment schemes online.){kind=link}