The Securities and Exchange Commission (SEC) has warned celebrities, bloggers, and social media influencers to stop promoting fake or unregistered investment schemes or face serious punishment, including prison time.
This warning comes as the new Investments and Securities Act (ISA) 2025, recently signed by President Bola Ahmed Tinubu, takes effect. The law gives SEC stronger powers to deal with Ponzi schemes and the people who promote them.
Dr. Emomotimi Agama, the Director General of the SEC, said the new law clearly defines Ponzi schemes and sets tough penalties for anyone involved. “The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment,” Dr. Agama said.
Under the ISA 2025, anyone found guilty of promoting Ponzi schemes could face a minimum fine of ₦20 million and at least 10 years in jail.
The SEC is also working with agencies like the EFCC, the Nigerian Police Force, and other government bodies to arrest and prosecute offenders.
Dr. Agama urged Nigerians to be very careful when approached with investment offers, especially those that promise fast or unrealistic profits. “People must be careful, ask questions, and consult professionals before investing their hard-earned money,” he said.
This warning follows the recent collapse of CBEX, a digital platform accused of scamming Nigerians of over ₦1.3 trillion by promising to double their money in just a month. CBEX also falsely claimed ties with international organizations.
“We are determined to shut down such operations and bring their promoters to justice,” Dr. Agama said.
To stop future scams, the SEC has set up special departments to monitor suspicious activities in the market and respond quickly. “Once we hear anything, we do something,” the DG said, describing their new approach as proactive and firm.
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The law also brings digital investments like cryptocurrencies under SEC’s control. All Virtual Asset Service Providers and Digital Asset Exchanges must now register with the Commission and follow strict guidelines. This is meant to protect investors from scams in the digital space.
“The SEC is capable, has the capacity, has the knowhow, and of course will be able to deal with anyone caught in this mess,” Dr. Agama warned.
He added that educating investors is a top priority. The SEC has launched podcasts, social media campaigns, and school programs to help Nigerians understand how to invest safely. “We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” he said.
The SEC encouraged the public to verify any investment opportunity with the Commission before sending money. “Once it is too good to be true, it certainly is not true,” Dr. Agama said.
He assured Nigerians that the capital market is a safe way to build wealth, as long as they follow the rules. “The capital market helps you to democratize wealth for everybody,” he said.
With the new ISA 2025 law in place, the SEC says the days of scamming Nigerians through flashy ads and false promises on social media are over.