The Securities and Exchange Commission (SEC) has cautioned Nigerians against investing in unregistered online schemes aggressively promoted across social media platforms, warning that many exhibit classic Ponzi characteristics.
In a public notice dated May 8, 2026, the Commission said several platforms offering guaranteed or unrealistic returns are neither registered nor authorised to operate within Nigeria’s capital market.
According to the SEC, these schemes are widely circulated on platforms such as WhatsApp, Instagram, Telegram, Facebook, and TikTok, where unsuspecting users are lured with promises of quick profits.
The regulator noted that many of these operations display features commonly associated with fraudulent investment arrangements, while some promoters also provide unauthorised financial advisory services.
The SEC warned that individuals who invest in such schemes risk losing their funds, stressing that offers of unusually high or “guaranteed” returns should be treated as major red flags.
It advised Nigerians to avoid unregistered investment platforms and refrain from taking financial advice from unlicensed individuals or entities. The Commission emphasised that only operators registered with the SEC are legally permitted to offer investment and advisory services in Nigeria.
Prospective investors were further urged to verify the registration status of any company or platform through the Commission’s official verification portal before committing funds.