The Securities and Exchange Commission (SEC) has warned Nigerians against investing in unregistered online investment schemes being promoted across social media platforms, saying many of them show characteristics of Ponzi schemes. The regulator cautioned that such platforms are not authorised to operate within Nigeria’s capital market and could expose investors to financial losses.
In a public notice dated May 8, 2026, the SEC said fraudulent investment operators are increasingly using platforms such as WhatsApp, Instagram, Telegram, Facebook, TikTok, and other digital channels to attract unsuspecting members of the public with promises of unrealistic or guaranteed returns.
According to the Commission, many of the schemes operate illegally and also provide unauthorised investment and advisory services. The SEC stressed that offers promising unusually high profits should be treated as warning signs of possible fraud.
The regulator advised Nigerians to avoid relying on financial advice from unlicensed individuals or entities, noting that only companies and operators registered with the SEC are legally permitted to provide investment-related services in the country’s capital market.
The Commission also urged prospective investors to verify the registration status of any investment platform, company, or promoter before committing funds. It directed members of the public to use the SEC’s official verification portal to confirm the legitimacy of investment opportunities before engaging with them.