Abuja, Nigeria – April 20, 2025

The Securities and Exchange Commission (SEC) has issued a strong caution to Nigerian influencers, content creators, bloggers, and celebrities, urging them to stop promoting unregistered and illegal investment schemes or face strict legal penalties, including heavy fines and imprisonment.

This stern warning follows the recent enactment of the Investments and Securities Act (ISA) 2025, signed into law by President Bola Ahmed Tinubu, which empowers the SEC to clamp down more aggressively on Ponzi and fraudulent financial schemes circulating online and offline.

Under the new Act, Ponzi schemes are now clearly defined, and promoters or supporters—whether individuals or platforms—can face a minimum fine of ₦20 million and a jail term of up to 10 years if found guilty.

Speaking on the development, SEC Director-General Emomotimi Agama revealed that the commission is working in close collaboration with major law enforcement bodies including the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to track, investigate, and prosecute violators of the law.

“The law now holds not just the creators of these fraudulent schemes accountable, but also influencers and bloggers who promote them,” Agama said. “We are using this medium to warn the public, especially social media personalities, to avoid endorsing or advertising any unregistered investment product.”

The SEC’s crackdown follows the collapse of CBEX, a high-profile digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion. CBEX allegedly attracted investors with promises of unbelievable returns and fake international partnerships.

Agama emphasized that all Virtual Asset Service Providers (VASPs) and Digital Asset Exchanges must now register with the SEC, as the ISA 2025 officially brings cryptocurrencies and digital assets under its regulatory oversight for the first time in Nigeria.

“Virtual assets are now classified as securities. Operators must register and comply with the new regulatory framework,” he said.

In an effort to protect investors and prevent future scams, the SEC has rolled out new educational initiatives, including a podcast series that explains the risks of unregulated investments, and is introducing capital market literacy programs in secondary schools and universities.

Agama also disclosed that the commission has set up specialized departments to monitor financial market activity, perform inspections, and identify fraud early.

“We have a dedicated monitoring department. If there’s even a whisper of fraudulent activity, we take swift action,” he added.

Nigerians have been urged to always confirm the registration status of any investment platform directly with the SEC before committing their money.

“If the returns seem too good to be true, they usually are,” Agama warned.

With the implementation of the ISA 2025, the SEC hopes to build a safer and more transparent investment environment in Nigeria while curbing the rise of digital fraud and unregulated financial activities.