The Securities and Exchange Commission (SEC) has issued a stern warning to the Nigerian public against investing in Silverkuun Investment Cooperative Society and Silverkuun Limited, stating that the entities are operating outside the legal bounds of the country’s capital market regulations.
In a statement released on Wednesday, May 29, 2025, the regulatory body declared that neither Silverkuun nor its affiliates are registered with the Commission to function in any capacity particularly as fund managers or investment advisers.
“The attention of the Securities and Exchange Commission has been drawn to the activities of Silverkuun Investment Cooperative Society/Silverkuun Limited which holds itself out as an investment adviser/fund manager,” the statement read.
“The Commission hereby informs the public that Silverkuun is not registered to operate in any capacity in the Nigerian Capital Market.”
Potential Fraud Alert
The SEC emphasized that engaging with unlicensed firms exposes investors to significant financial risk, fraud, and the loss of capital, reiterating that only registered operators can lawfully provide capital market services in Nigeria.
It urged Nigerians to exercise due diligence before parting with their money, especially in an era of proliferating get-rich-quick schemes that often prey on financial desperation and lack of regulatory awareness.
“The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities on the Commission’s dedicated portal,” the SEC advised, pointing users to www.sec.gov.ng/cmos.
Crackdown on Unlicensed Firms Continues
This is not the first warning from the Commission in recent weeks. On May 6, the SEC also flagged Property World Africa Network (PWAN) for similar offenses, asserting that the company was not authorized to solicit investments or operate within the capital market.
The Commission’s Director-General, Emomotimi Agama, has since vowed to intensify enforcement actions. He warned that the SEC will not hesitate to shut down illegal operations and ensure prosecution of their promoters.
“We are committed to sanitizing the investment landscape and protecting Nigerians from dubious schemes,” Agama said during a recent media briefing.
A Growing Trend of Unregulated Finance
The SEC’s warning comes amid a surge in fraudulent investment platforms across Nigeria many of which masquerade as cooperatives, tech firms, or real estate syndicates. These outfits often operate outside regulatory oversight, making it difficult for victims to recover lost funds.
Experts advise that before committing funds to any entity promising returns, potential investors should always:
- Check registration status with SEC or CBN
- Seek professional financial advice
- Be wary of unrealistic profit guarantees
- Review the firm’s physical address, board, and history
