The Securities and Exchange Commission (SEC) has warned celebrities, bloggers, and influencers against promoting unregistered investment platforms. This move comes under the newly enacted Investments and Securities Act 2025, which gives the Commission expanded powers to regulate and enforce compliance.
Speaking in Abuja, SEC Director General Dr. Emomotimi Agama emphasized that the Act not only strengthens the Commission’s authority but also makes those promoting unregistered platforms, particularly on social media, liable for prosecution.
The regulator, acting under the new Investments and Securities Act 2025, is collaborating with the EFCC, the Nigerian Police, and other agencies to investigate, prosecute and dismantle illegal financial operations across the country.
Agama stated “The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment. We are therefore using this medium to warn such persons to desist from promoting unregistered entities.”
The law provides a clearer definition of Ponzi operations and introduces stricter consequences, including a minimum fine of ₦20 million and a 10-year jail term for offenders. Reaffirming the Commission’s stance, Agama stated that the SEC is fully equipped with the tools, expertise, and legal authority needed to track down and prosecute individuals exploiting regulatory gaps to defraud investors.
He noted that the SEC’s crackdown on Ponzi schemes has intensified following the collapse of CBEX, a digital investment platform accused of swindling Nigerians out of over ₦1.3 trillion. CBEX allegedly enticed investors with promises of exorbitant returns and misleading claims of international partnerships.
“We will shut down their operations and the promoters will be made to face the full weight of the law,” Agama stated.
According to the SEC boss, the ISA 2025 also officially brings digital assets under the commission’s regulatory oversight of the commission for the first time. He stated that virtual assets have been classified as securities meaning Virtual Asset Service Providers and Digital Asset Exchanges are now required to register with the SEC and comply with its regulations.
Agama also stressed the importance of financial literacy in safeguarding investors, stating “We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” adding that the commission is also pushing capital market education into schools and universities.
The commission urged the public to confirm the registration status of any investment scheme with the SEC before committing their funds. “Once it is too good to be true, it certainly is not true,” he warned.
He also disclosed that the SEC has established specialized departments tasked with tracking market activity, conducting inspections, and detecting early signs of fraudulent activity. “We have a monitoring department. We also do onsite inspections. Once we hear anything, we do something,” he said.
Agama reaffirmed the SEC’s commitment to investor protection and market development. “The capital market helps you to democratize wealth for everybody. The ISA 2025 thus represents a significant step forward in protecting Nigerian investors and fostering a resilient financial market,” he said.
