The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians, urging them to be wary of companies claiming that registration with the Corporate Affairs Commission (CAC) or possession of certificates from the Economic and Financial Crimes Commission (EFCC) grants them the right to operate investment schemes.
Speaking during a sensitisation campaign against Ponzi schemes at Garki Market in Abuja on Wednesday, the Director-General of SEC, Dr. Emomotimi Agama, condemned the activities of both local and foreign companies defrauding unsuspecting Nigerians through fraudulent investment platforms.
“It is disheartening that some Nigerians and foreign entities have specialised in duping our citizens. The government will no longer sit back and watch as people are robbed of their hard-earned money,” Agama stated.
He stressed that only schemes registered and regulated by the SEC are legally recognised, adding that many fraudulent operators hide behind CAC or EFCC certifications to deceive the public.
“If it sounds too good to be true, then it probably is. CAC registration and EFCC certificates are not enough. These are red flags,” he warned.
Dr. Agama also highlighted that under the recently signed Investments and Securities Act, perpetrators of Ponzi schemes face penalties of up to N20 million and 10 years imprisonment.
As part of its efforts to combat financial scams, the SEC has begun a nationwide campaign to educate the public on how to identify and avoid illegal schemes.
Also speaking at the event, Assistant Director of the SEC’s Enforcement Department, Tope Onwionoko, emphasised the importance of financial literacy in curbing the spread of Ponzi schemes.
“We’re bringing this campaign to the grassroots—markets, churches, mosques, hospitals, barracks—because the message must reach everyone,” Onwionoko said.
The SEC urged Nigerians to always verify the authenticity of any investment platform through its official channels before committing their money.
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