The Securities and Exchange Commission (SEC) has revealed that Nigerians have lost an estimated ₦316 billion to Ponzi schemes and unregistered fund managers, warning the public against falling prey to fraudulent investment platforms promising unrealistic returns.
According to the Commission, despite repeated warnings and sensitisation campaigns, thousands of Nigerians continue to invest in illegal schemes driven by greed, desperation, and lack of financial literacy.
SEC officials noted that these schemes often disguise themselves as legitimate investment opportunities, using social media and digital payment platforms to lure unsuspecting citizens with promises of high profits in a short time.
“The growing number of victims is alarming. Greed, ignorance, and the get-rich-quick mentality remain the major factors driving participation in Ponzi schemes,” the Commission stated.
The regulator reiterated that only licensed fund managers and investment firms registered with the SEC are legally authorised to collect funds from the public for investment purposes. It urged Nigerians to verify the registration status of any investment platform through the Commission’s official website before committing their money.
The SEC also disclosed that it is working with law enforcement agencies and the Economic and Financial Crimes Commission (EFCC) to trace fraudulent operators, recover assets where possible, and prosecute offenders.
The Commission further emphasized the importance of financial education, noting that public awareness remains the most effective safeguard against investment fraud.
Ponzi schemes — which pay old investors with funds from new participants — have surged in recent years, especially amid economic hardship and digital financial expansion, leaving many Nigerians in debt and disillusioned.
The SEC’s renewed warning comes as part of its ongoing campaign to strengthen investor protection and promote transparency within Nigeria’s capital market.
