The Securities and Exchange Commission (SEC) has cautioned Nigerians to avoid investment schemes that only display CAC and EFCC certificates.
The SEC Director-General, Dr. Emomotimi Agama, gave this warning on Wednesday during a sensitisation outreach at Garki Market in Abuja.
He said registration with the Corporate Affairs Commission (CAC) and having a certificate from the EFCC’s SCUML unit does not mean a company can run investment schemes.
Agama said some Nigerians and foreign firms are misleading the public by using these certificates to operate fraudulent Ponzi schemes.
According to him, only registration with the SEC guarantees the legality and regulation of investment offerings in Nigeria.
He noted that the government would not allow billions of naira to be stolen through illegal investment schemes.
Agama explained that the newly signed Investments and Securities Act provides stronger legal backing to combat Ponzi operators.
“Any company running an investment scheme must be registered with the SEC. CAC and EFCC certificates are not enough,” he said.
He also stated that offenders now face up to 10 years imprisonment and a N20 million fine under the new law.
Agama urged Nigerians to verify every investment opportunity before committing their funds, warning that many schemes are traps.
He described promotional events and training sessions used to lure people into Ponzi schemes as illegal tactics used by fraudsters.
“We are here to help people identify legitimate investments and protect them from financial loss,” he said.
Also speaking, Tope Onwionoko, Assistant Director in SEC’s Enforcement Department, stressed the importance of financial literacy.
She said many victims of Ponzi schemes fall prey due to lack of knowledge and economic desperation.
Onwionoko said the Commission aims to reach all Nigerians with its awareness campaign, starting with market communities.
According to her, awareness will force Ponzi operators to shut down, making the environment hostile for fraud.
She urged Nigerians to look out for red flags and report suspicious schemes to the SEC immediately.
The SEC warned that real investment firms must meet regulatory conditions, and no firm is exempt based on certificates alone.
Both Agama and Onwionoko stressed that protecting investors is the Commission’s top priority.
