The Securities and Exchange Commission (SEC) has issued a firm warning to celebrities, social media influencers, and bloggers to steer clear of promoting unregistered investment schemes, declaring that such endorsements now carry serious legal consequences, including imprisonment.
Speaking in Abuja on Sunday, SEC’s Director-General, Dr. Emomotimi Agama, disclosed that the Commission, in collaboration with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other enforcement bodies, is ramping up efforts to identify, investigate, and prosecute those involved in marketing fraudulent investment platforms to the public.
Dr. Agama emphasized that the newly signed Investments and Securities Act (ISA) 2025 offers a legal backbone for the Commission to take decisive action. He stated that the law specifically targets promoters of illegal investment schemes, including those who use their social media influence to lure unsuspecting Nigerians into financial traps.
He pointedly cautioned celebrities and influencers against leveraging their platforms to endorse such schemes, noting, “The law is clear. Anyone who promotes fraudulent investment ventures—including bloggers and influencers—will face strict penalties. Imprisonment is not off the table.”
Citing the recent downfall of CBEX, a digital investment platform that allegedly duped Nigerians of over ₦1.3 trillion, Dr. Agama said the incident should serve as a harsh lesson. According to him, CBEX made extravagant promises of doubling investor funds within a month and falsely claimed international affiliations—clear red flags the public should have questioned.
“The collapse of CBEX is a national wake-up call. The Commission has shut down their operations and is moving forward with prosecution. The perpetrators will face the full extent of the law,” he affirmed.
He further stressed that the SEC cannot assist victims in recovering funds once invested in unregistered schemes, underscoring the importance of due diligence. “We urge Nigerians to verify any investment with the SEC before committing their money. If the promise sounds too good to be true, it probably is,” he warned.
The new ISA 2025 is not only redefining the legal framework around Ponzi schemes but also introduces stiff penalties: a minimum fine of ₦20 million and up to 10 years in prison for promoters of such schemes. For the first time, the legislation also brings digital assets under regulatory oversight, mandating registration for Virtual Asset Service Providers and Digital Asset Exchanges.
To further its investor protection mandate, the SEC has established specialized departments to monitor market activities and conduct on-site inspections. Dr. Agama noted that these proactive measures are designed to detect irregularities early and avoid large-scale financial disasters like CBEX.
“SEC is well-equipped, both in capacity and expertise, to tackle these challenges. We’ve done it before, and with ISA 2025, we’re even better positioned to safeguard Nigeria’s investment climate,” he said.
Beyond enforcement, education forms a core pillar of the SEC’s preventive strategy. The Commission has launched various public awareness campaigns, including podcasts and digital content, aimed at educating citizens on the risks associated with unregistered investment platforms. Capital market literacy programs are also being integrated into school curricula.
Dr. Agama called on the public to adopt a more cautious investment approach and to rely only on licensed professionals. “The Commission is committed to creating a safe and transparent investment environment. Our ultimate goal is to democratize wealth through a robust capital market,” he concluded.
