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SEC warns Nigerians against Ponzi schemes promoted on social media 

The commission also cautioned against relying on investment advisories circulated online by unregistered persons.

• May 14, 2026
Securities and Exchange Commission (SEC)
Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) has warned the public against investing in illegal online schemes being promoted across social media platforms.

The commission, in a public notice issued on Thursday in Abuja, said many of the investment schemes exhibited characteristics of Ponzi and prohibited operations.

The commission advised the public to refrain from investing in those platforms promising unrealistic returns.

“Our attention has been drawn to the increasing promotion of unregistered online investment schemes on social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms.

”Many of these investment schemes exhibit characteristics of Ponzi or prohibited investment schemes. Some operators of such schemes also provide unauthorised investment services to members of the public.

”Accordingly, the commission advises the public to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns,” it said.

The SEC also cautioned members of the public against relying on investment advisories circulated online by unregistered persons or entities.

“Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the commission. Reliance on such advisories may expose investors to significant financial losses and fraudulent schemes,” the SEC added.

The commission reminded Nigerians that under the Investments and Securities Act, 2025, only entities registered by the SEC were authorised to promote investment services and provide investment advisory services.

It urged prospective investors to verify the registration status of any company, platform or entity offering investment opportunities through its official portals before committing funds.

It directed the public to check registered operators on the SEC fintech registered operators portal⁠ and the SEC capital market operators portal⁠ before transacting with any investment platform. 

(NAN)

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