Nigerians Lose N300.2bn to Fraudulent Schemes — SEC Warns Public on Investment Scams

The Securities and Exchange Commission (SEC) has revealed that Nigerians have collectively lost about N300.2 billion to fraudulent investment schemes in the past few years, raising concerns about the alarming rise of unregistered financial platforms operating across the country.According to the SEC, these losses stem from the activities of unlicensed fund managers, Ponzi operators, and illegal online trading platforms that promise unrealistic returns to unsuspecting investors. The Commission emphasized that the trend poses a significant threat to investor confidence and national financial stability.

Speaking at an investor protection forum in Abuja, SEC Director-General, Dr. Emomotimi Agama, said the Commission’s findings showed that several Nigerians continue to fall prey to fake investment ventures despite repeated warnings and awareness campaigns.

“Over the last few years, our data indicate that Nigerians have lost over N300.2 billion to fraudulent investment operations. These schemes thrive on ignorance, greed, and the lack of due diligence by investors. We urge the public to verify any investment opportunity with the SEC before committing their funds,” Agama stated.

He explained that most of the fraudulent schemes operate under the guise of cooperative societies, crypto trading firms, and agricultural investment outfits that promise quick and high returns. Many of them, he said, do not possess valid operating licenses or registration with the Commission.

The SEC boss noted that the proliferation of illegal investment platforms has been aided by the rise of social media influencers and online marketing strategies that lure people with deceptive testimonials. “We are working with law enforcement agencies and digital platforms to trace, shut down, and prosecute operators of these illegal businesses,” he added.

Agama also highlighted the Commission’s ongoing reforms aimed at strengthening market surveillance, licensing requirements, and digital monitoring tools to detect suspicious financial activities early. He urged Nigerians to make use of the SEC’s online verification portal to confirm the registration status of any investment company before engaging with them.

“Investor education remains our most effective tool against fraudulent schemes. We encourage citizens to visit our website, attend our sensitization programs, and verify before they invest,” Agama said.

The SEC further disclosed that some of the identified fraudulent schemes had adopted hybrid models, combining cryptocurrency trading, forex investment, and multilevel marketing tactics to exploit regulatory loopholes.

In response, the Commission said it is collaborating with the Economic and Financial Crimes Commission (EFCC), Central Bank of Nigeria (CBN), and other regulatory bodies to enhance oversight and enforcement actions against such operators.

An independent financial analyst, Mr. Ayodele Olowu, described the development as a wake-up call for Nigerians to exercise greater caution in financial dealings. He noted that while genuine investment opportunities exist, investors must learn to differentiate between legitimate ventures and scams.

“Any investment that promises unrealistic returns, such as 50 percent profit in a month, is a red flag. Nigerians must move from speculative investing to informed investing,” Olowu said.

He urged the SEC to intensify efforts to strengthen investor awareness campaigns, particularly in rural and semi-urban areas where fraudulent agents often target less-informed citizens.

The SEC reiterated that it remains committed to protecting investors and deepening the integrity of Nigeria’s capital market. The Commission also promised to expand its whistleblowing framework to encourage public reporting of suspicious investment operations.

As part of preventive measures, the SEC is developing a National Investment Protection Framework that will integrate technology-driven surveillance, inter-agency collaboration, and stronger penalties for fraudulent operators.

Agama assured that with ongoing regulatory reforms, the SEC aims to make the Nigerian capital market more transparent, accountable, and investor-friendly. “Our goal is to build a safe and trusted market where investors can grow their wealth confidently,” he concluded.

Financial experts have continued to caution that the fight against fraudulent investment schemes requires collective responsibility between regulators, financial institutions, and the public. They maintain that transparency, investor education, and enforcement are key to reducing the recurrence of such losses in Nigeria’s financial ecosystem.