Emomotimi Agama, director-general of the Securities and Exchange Commission (SEC), has warned Nigerians to beware of online platforms promising unrealistic financial returns.
Agama stated this on Channels Television’s Business Morning, emphasising the significance of verifying the legitimacy of investment schemes.
He highlighted that registration with the SEC serves as a crucial indicator of a platform’s credibility, saying “if an offer seems too good to be true, it’s essential to investigate further.”
He urged Nigerians to ensure that any investment firm is not only registered with the Corporate Affairs Commission but is also licensed by the SEC.
Agama pointed out that “numerous fraudulent schemes have emerged, enticing individuals with the lure of excessive profits. To counter this, the SEC has proactively issued over 85 advisories to inform the public about these illegal operators.”
He referenced Section 3(a) of the Investment and Securities Act 2025, which grants the SEC the authority to oversee businesses within Nigeria’s capital market.
He encouraged Nigerians to utilise the SEC’s offices and forthcoming digital platforms to verify the status of investment firms before making any decisions.
“It is important to scrutinise promises that appear implausible; these can often indicate fraud. We urge the public to ask questions and engage with us to confirm legitimacy,” he stated.
It will be recalled that the Economic and Financial Crimes Commission (EFCC) has identified 58 unregistered Ponzi scheme operators, including Wales Kingdom Capital, MBA Trading & Capital Investment Limited, Ovaioza Farm Produce Storage Limited, and Chinmark Homes.
