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SEC Warns Influencers And Bloggers Against Promoting Fraudulent Investment Schemes

Securities and Exchange Commission (SEC) has issued a stern warning to social media influencers, bloggers, and celebrities, urging them to desist from promoting unregistered and fraudulent investment schemes.

The warning was issued by the SEC’s Director-General, Dr Emomotimi Agama, in a notice released on Sunday in Abuja.

Dr Agama noted that the Commission is working in close collaboration with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other relevant government agencies to identify and prosecute those found guilty of flouting investment regulations.

Highlighting the provisions of the newly enacted Investments and Securities Act (ISA) 2025, Dr Agama said the law specifically targets the promoters of unregistered investment schemes, including individuals who use their platforms to endorse such ventures.

“The law also covers influencers and bloggers who promote fraudulent schemes, with clear penalties, including imprisonment,” he stated.

Citing the recent collapse of CBEX—a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion—Agama described the incident as a stark reminder of the dangers posed by unregulated financial platforms. CBEX allegedly promised unrealistic returns and falsely claimed international partnerships.

“The collapse of CBEX underscores the urgency of our crackdown. We are shutting down their operations, and the promoters will face the full weight of the law,” he added.

Agama reiterated the Commission’s resolve to protect investors and develop Nigeria’s capital market. He urged Nigerians to verify any investment opportunity with the SEC before committing their money, advising: “If it sounds too good to be true, it probably is.”

He also reassured the public of the SEC’s capability to detect and shut down Ponzi schemes, stating, “We have dealt with similar schemes in the past and will continue to do so, leveraging the powers of the ISA 2025 to safeguard investors.”

In a bid to strengthen regulatory oversight, the SEC has established dedicated departments tasked with monitoring market activities and conducting inspections aimed at detecting irregularities early.

“These proactive measures are designed to prevent large-scale frauds like CBEX from recurring,” Dr Agama said.

He concluded by emphasising the significance of the ISA 2025 as a critical tool in securing the Nigerian investment landscape and building a resilient and transparent financial market.

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