*Dr. Emomotimi Agama, Director-General of Nigeria’s Securities and Exchange Commission, cautions celebrities, social media influencers, and bloggers to steer clear of endorsing Ponzi schemes to avoid legal consequences, based on the Investments and Securities Act 2025 that also targets individuals promoting fraudulent schemes with clear penalties, including imprisonment

Isola Moses | 绿帽献妻

In a bid to protect Nigerian investors, restore market integrity, and promote development, the Securities and Exchange Commission (SEC) has cautioned celebrities, influencers and bloggers against promoting unregistered investment schemes in the country.

绿帽献妻 reports the SEC, which noted its renewed consumer education and sensitisation campaign is against the backdrop of apparent risks Ponzi schemes pose to financial stability in the economy, said violators would face possible imprisonment.

The Commission in a statement Sunday, April 20, 2025, also explained how it is working closely with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigeria Police, and other relevant government bodies, to investigate and prosecute violators in the financial investment space.

Collage picture showing some angry investors, and mob breaking into the CBEX Office in Ibadan, Oyo State capital, recently

Dr. Emomotimi Agama, Director-General of SEC, at the weekend, also disclosed the market regulatory Commission could not help victims of the CBEX Ponzi scheme that lost N1.3 trillion to recover their lost investment funds.

Agama noted the Investments and Securities Act (ISA) 2025 specifically, targets promoters of unregistered schemes.

The regulator urged celebrities, social media influencers, and bloggers to steer clear of endorsing such Ponzi ventures to avoid legal consequences.

He also stated: 鈥淭he 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.”

Key provisions of ISA 2025, by SEC

Dr. Agama said SEC was intensifying efforts at discouraging Ponzi schemes, following the enactment of the Investments and Securities Act (ISA) 2025, signed into law by President Bola Ahmed Tinubu.

The SEC Chief explained the new legislation explicitly defines Ponzi schemes and introduces stringent sanctions, including a minimum fine of N20 million, and a 10-year jail term for promoters of such fraudulent schemes.

He equally stressed the Commission鈥檚 capacity and readiness to tackle Ponzi schemes in the ecosystem.

鈥淪EC is capable, has the capacity, has the know-how and, of course, will be able to deal with anyone caught in this mess” Agama assured Nigerians.

The SEC, he further explained, has dealt with similar schemes before and would continue to do so, leveraging the new powers granted by ISA 2025 to protect investors and develop the market.

On collapse of CBEX Ponzi scheme

The Director-General of

鈥淭he recent collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion, has underscored the urgency of this crackdown.

鈥樷�機BEX promised unrealistic returns, doubling investments within a month, and deceived many with false claims of global affiliations.”

Agama asserted: 鈥淲e will shut down their operations and the promoters will be made to face the full weight of the law.”

According to him, the ISA 2025 also brought digital assets under SEC鈥檚 regulatory umbrella for the first time, recognising virtual assets as securities.

He also explained that the of this space meant that Virtual Asset Service Providers and Digital Asset Exchanges must register with SEC and comply with regulations, closing previous legal gaps exploited by fraudulent operators.

鈥淓ducation is a key pillar in the SEC鈥檚 strategy. The commission has launched podcasts, social media campaigns, and is integrating capital market education into schools and universities.

鈥淲e have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” stated he.

SEC, therefore, urged Nigerians to verify any investment opportunities with the Commission before committing their funds.

Agama warned that once an investment is too good to be true, then, it certainly, is not true.

The Director-General of SEC restated that the Commission remained committed to protecting investors, in line with its twin objectives of investor protection and market development.

He advised Nigerians to be cautious, consult professionals before investing, and to avoid schemes promising unrealistic returns in the economy.

He said: 鈥淭he SEC has also established departments for monitoring market activities and conducting inspections to detect irregularities early.

“We have a monitoring department, we also do onsite inspections, once we hear anything we do something.”

Dr. Agama added: “These proactive measures aim to prevent the recurrence of massive frauds like CBEX.

鈥淭he Commission is focused on democratiding wealth through a safe and transparent capital market.

“We are committed to providing a safe investment environment, the capital market helps you to democratise wealth for everybody.”

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