The Securities and Exchange Commission has warned that individuals promoting fraudulent investment schemes on social media platforms will be prosecuted under the new Investments and Securities Act 2025.
In a statement issued on Sunday in Abuja, the Director-General of the Commission, Dr Emomotimi Agama, said the regulatory body is working with relevant enforcement agencies to clamp down on illegal investment promotions and their facilitators.
Dr Agama stated that the Commission is particularly concerned about the growing number of influencer celebrities and online content creators who use their platforms to endorse unlicensed investment products.
He stressed that the ISA 2025 provides legal grounds to prosecute such individuals and impose penalties, including jail terms.
According to the Commission’s leadership, the recent collapse of CBEX a digital investment platform accused of defrauding investors of over N1.3 trillion has shown why the nation needs stronger enforcement.
Agama said CBEX lured investors with promises of unrealistic returns and fabricated claims of global affiliations.
He confirmed that the SEC has already moved to shut down the company’s operations while legal proceedings against the promoters are underway.
The Commission advised the public to avoid any investment offering that is not registered with the SEC and warned against trusting endorsements from unverified personalities.
It said that several illegal operators often use popular figures to build credibility and attract unsuspecting investors.
Agama noted that the SEC has set up new surveillance units to track promotional activities online and detect potential violations early.
These units are responsible for market inspections and real-time monitoring to prevent large-scale financial losses.
The Commission urged Nigerians to verify the legitimacy of any investment offer on its official website or through licensed professionals.
It added that new provisions in the ISA 2025 are designed to protect investors and maintain confidence in Nigeria’s capital markets.
The SEC said it remains committed to cleansing the investment space of Ponzi operations and will ensure that all violators are brought to justice.
