The Securities and Exchange Commission (SEC) has issued a strong warning to influencers, bloggers, and celebrities against promoting unregistered investment platforms, stating that violators will face legal consequences under Nigeria’s new Investments and Securities Act (ISA) 2025.
In a statement on Sunday, the Commission said the recently signed law by President Bola Tinubu gives it stronger powers to combat Ponzi schemes. The law introduces clear definitions for such schemes and imposes a minimum fine of N20 million and up to 10 years imprisonment for their promoters.
According to SEC Director-General, Emomotimi Agama, the Commission is working with the EFCC, Nigeria Police Force, and other agencies to investigate and prosecute offenders.
“The law now targets influencers and bloggers who promote fraudulent investment schemes. There are clear penalties, including jail time,” Agama stated.
This crackdown follows the collapse of CBEX, a controversial digital investment platform that allegedly defrauded Nigerians of over N1.3 trillion. CBEX reportedly enticed investors with fake promises of high returns and bogus international partnerships.
“We will shut down these operations and ensure promoters face the full weight of the law,” Agama said.
Digital Assets Now Under SEC Oversight
Agama also revealed that the ISA 2025 now brings digital assets under SEC’s regulatory control. Platforms like Virtual Asset Service Providers and Digital Asset Exchanges must now register with the Commission and comply with regulatory standards.
“Digital assets are now officially recognised as securities,” he confirmed.
Educating and Protecting Investors
To enhance investor protection, the SEC has launched a podcast to educate the public about investment risks and is pushing capital market education into schools and universities.
“If it’s too good to be true, it probably isn’t true,” Agama warned, urging Nigerians to always verify the registration status of any investment firm via the SEC.
The Commission also disclosed the creation of specialised monitoring departments that conduct inspections and detect early signs of fraud.
“We act fast. Once we hear something, we investigate immediately,” he said.
Agama reiterated SEC’s commitment to market stability:
“The capital market helps democratise wealth. ISA 2025 is a big step forward in protecting Nigerian investors and ensuring a stronger, more resilient financial system.”
