The Securities and Exchange Commission (SEC) has issued a warning to Nigerians over the growing spread of unregistered online investment schemes being aggressively promoted on social media platforms, cautioning that many of them display characteristics of Ponzi schemes.
The warning was contained in a public notice dated May 8, 2026, and published on the Commission’s official communication channels.
The Securities and Exchange Commission Nigeria stated that several of the online platforms promising guaranteed or unrealistic returns are neither registered nor authorised to operate within Nigeria’s capital market.
It noted that these schemes are being widely promoted across digital platforms, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other social media channels.
“The attention of the Securities and Exchange Commission 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,” the SEC stated.
The Commission added that many of the schemes exhibit features commonly associated with Ponzi or prohibited investment arrangements, while some operators also provide unauthorised investment services to unsuspecting members of the public.
It warned that investors who engage with such platforms risk losing their funds to fraudulent operators, stressing that promises of unusually high or guaranteed returns should be treated as clear warning signs.
The SEC further urged Nigerians to avoid participating in unregistered online investment schemes and to desist from relying on financial advice from unlicensed individuals or entities.
According to the regulator, only operators duly registered with the Commission are legally permitted to provide investment and advisory services within Nigeria’s capital market.
The Commission also advised prospective investors to verify the registration status of any investment company, platform or promoter before committing funds.
“The investing public is advised to confirm the status of companies and entities offering investment opportunities through the Commission’s dedicated verification portal before transacting with them,” the SEC stated.
