The Securities and Exchange Commission (SEC) has issued a stern warning to celebrities, social media influencers, and bloggers against endorsing unregistered investment schemes, stating that violators face severe penalties, including imprisonment, under the new Investments and Securities Act (ISA) 2025.
In a statement released on Sunday, the Commission said it is intensifying efforts to crack down on Ponzi schemes in collaboration with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other law enforcement agencies.
Speaking with Vanguard, Director General of the SEC, Dr. Emomotimi Agama, emphasized that the Commission would not be able to assist victims of collapsed schemes such as CBEX, which allegedly defrauded Nigerians of over ₦1.3 trillion.
“Influencers and bloggers who promote unregistered or fraudulent schemes are now directly liable under the law,” Agama said. “The ISA 2025 outlines clear consequences — including a minimum fine of ₦20 million and up to 10 years imprisonment — for those found guilty of promoting Ponzi operations.”
The DG described the recent collapse of CBEX, a digital investment platform that promised unrealistic returns, as a wake-up call for both regulators and the public. CBEX allegedly misled investors by claiming to double their funds within 30 days and falsely advertising international affiliations.
“Let me be clear — we will shut down their operations, and the promoters will face the full weight of the law,” he declared.
Agama noted that the ISA 2025 is a landmark legislation recently signed by President Bola Ahmed Tinubu. It not only empowers SEC with broader regulatory tools but also brings digital assets under its regulatory framework for the first time. This means Virtual Asset Service Providers and Digital Asset Exchanges must now register with the Commission and operate within its guidelines.
To prevent future investment fraud, Agama stressed the importance of investor education, revealing that SEC has launched podcasts, social media awareness campaigns, and integrated capital market studies into school curricula.
“We want Nigerians to understand that when something sounds too good to be true, it probably is. Always verify with SEC before investing,” he warned.
The Commission has also strengthened its surveillance infrastructure, including a dedicated monitoring department and on-site inspection teams, to detect suspicious activities early and protect investors proactively.
“The capital market is a powerful tool for wealth democratization, and we are committed to making it safe, transparent, and accessible for all Nigerians,” Agama added.
He urged the public to exercise caution, seek professional advice before investing, and avoid schemes that offer exaggerated returns.
The SEC reiterated its commitment to investor protection and sustainable market development, calling the ISA 2025 a bold step toward building a resilient and fraud-free financial ecosystem.
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