The Securities and Exchange Commission (SEC) has issued a stern warning to influencers, bloggers, and celebrities, cautioning them against endorsing or promoting unregistered investment schemes, with violators facing stiff legal consequences.
The warning, made public on Sunday, follows the recent enactment of the Investments and Securities Act 2025, signed into law by President Bola Tinubu. The new legislation provides a clear legal framework for identifying Ponzi schemes and authorises the SEC to impose a minimum fine of N20 million and a prison sentence of up to 10 years on offenders.
Speaking on the new provisions, SEC Director-General Emomotimi Agama revealed that the Commission is collaborating with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other agencies to investigate and prosecute those involved in illegal investment activities.
“The law specifically addresses influencers and bloggers who promote fraudulent schemes. There are clear penalties, including imprisonment. We urge such individuals to immediately stop promoting unregistered entities,” Agama stated.
This renewed crackdown comes in the wake of the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion. The platform allegedly attracted investors with exaggerated promises of returns and false claims of international partnerships.
“We will shut down these illegal operations and ensure that promoters are held accountable under the law,” Agama said.
He further disclosed that the new Act extends the Commission’s regulatory oversight to digital assets, officially recognising them as securities. As a result, Virtual Asset Service Providers and Digital Asset Exchanges are now required to register with the SEC and comply with established regulations.
Agama also emphasised the Commission’s commitment to investor education as a tool for market protection. “We’ve launched a podcast to raise awareness about the risks of unregistered investment schemes and are integrating capital market education into schools and universities,” he noted.
The SEC urged the public to verify the registration status of any investment platform before committing funds. “If it sounds too good to be true, it probably is,” Agama warned.
He added that the Commission has set up dedicated departments to monitor market activities, conduct onsite inspections, and detect early signs of fraudulent activity. “We have systems in place to respond swiftly to any suspicious developments,” he said.
Reaffirming the Commission’s dedication to investor protection and market growth, Agama concluded, “The capital market is a tool for inclusive wealth creation. The ISA 2025 marks a major milestone in securing Nigeria’s investment landscape and ensuring a more resilient financial ecosystem.”
According to The PUNCH, the SEC also declared that any investment or digital asset platform not registered with the Commission is operating illegally.
Advertisement
