The Securities and Exchange Commission (SEC) has issued a stern warning to influencers, bloggers, and celebrities, urging them to stop promoting investment schemes that are not registered with the commission or risk facing legal action.
The warning comes in the wake of the newly enacted Investments and Securities Act 2025, recently signed into law by President Bola Tinubu. The law explicitly defines Ponzi schemes and authorizes the SEC to impose a minimum fine of N20 million and a 10-year prison sentence on those who promote such schemes.
Emomotimi Agama, the SEC’s Director-General, revealed that the commission is collaborating with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other law enforcement agencies to investigate and prosecute violators.
“The law now includes influencers and bloggers who publicize fraudulent investment platforms. They face clear consequences, including imprisonment. This is a formal warning for such individuals to cease promoting unregistered schemes,” Agama stated.
He referenced the case of CBEX, a digital investment platform that allegedly scammed Nigerians out of over N1.3 trillion by making false claims of international affiliations and promising unrealistically high returns.
“The SEC will shut down such operations and ensure the individuals behind them face full legal consequences,” Agama added.
According to him, the new law also places digital assets under the SEC’s regulatory scope for the first time. Virtual assets are now classified as securities, meaning Virtual Asset Service Providers and Digital Asset Exchanges must register with the commission and comply with its rules.
Agama stressed the importance of investor education in the SEC’s mission, noting the launch of a podcast series to educate Nigerians on the dangers of unregistered schemes. He also mentioned the introduction of capital market education in schools and universities.
The SEC advised the public to verify the registration of any investment scheme through official channels before investing. “If it sounds too good to be true, it most likely is,” he warned.
He also highlighted the SEC’s creation of specialized departments to monitor market activity, conduct onsite inspections, and detect early signs of fraudulent behavior.
Reaffirming the SEC’s commitment, Agama said, “Our goal is to protect investors and develop the capital market as a tool for wealth creation. The ISA 2025 marks a major step in strengthening investor protections and ensuring a stable financial market in Nigeria.”
Recall that the SEC had declared all unregistered investment and digital asset platforms illegal.
