SEC warns social media influencers, bloggers against promoting unregistered schemes

Securities and Exchange Commission (SEC) has warned social media influencers and bloggers against promoting unregistered investment schemes. SEC’s director-general, Emomotimi Agama, gave the warning in a notice on Sunday. He said the commission was working closely with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other relevant government agencies to investigate and prosecute violators. According to Mr Agama, the recently enacted Investments and Securities Act (ISA) 2025 targets unregistered investment scheme promoters. He urged celebrities, influencers, and bloggers to avoid endorsing such ventures or face legal consequences.
“The law also covers influencers and bloggers who promote fraudulent schemes, with clear penalties, including imprisonment,” Mr Agama stated.
“We are using this opportunity to warn such individuals to immediately desist from promoting unregistered entities.” He reiterated that the SEC had the capacity, expertise, and legal backing to combat Ponzi schemes and protect the investing public. “We have dealt with similar schemes in the past and will continue to do so, leveraging the powers of the ISA 2025 to safeguard investors and develop the capital market,” he added. Mr Agama cited the recent collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion, as a wake-up call. He described CBEX’s promises of doubling investments within a month and its false claims of global partnerships as clear indicators of fraud.
“The collapse of CBEX underscores the urgency of our crackdown. We are shutting down their operations, and the promoters will face the full weight of the law,” he said. He urged Nigerians to verify the authenticity of any investment opportunity with the SEC before committing funds, cautioning that “if it sounds too good to be true, it probably is.” Mr Agama reaffirmed the commission’s commitment to investor protection and market development, encouraging citizens to consult licenced professionals and avoid get-rich-quick schemes. “The SEC has also established dedicated departments to monitor market activities and conduct inspections aimed at detecting irregularities early. These proactive measures are designed to prevent large-scale frauds like CBEX from recurring,” he said. He highlighted the significance of ISA 2025, describing it as a major step forward in securing Nigeria’s investment landscape and building a resilient financial market. NAN