The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has issued a strong warning to Nigerians to avoid fraudulent investment schemes, many of which promise unrealistic returns and operate without SEC registration.
Speaking during a televised interview on Tuesday, Agama emphasized that only the SEC has the legal authority to license firms for investment and securities business in Nigeria, not the Corporate Affairs Commission (CAC) or any other agency.
“The CAC will register your business, but it does not authorise you to operate in the Nigerian capital market,” he clarified.
“Licences for investments and securities businesses are issued only by the SEC.”
Over 85 Advisories Issued
Agama disclosed that the Commission has issued more than 85 advisories in recent months on fraudulent schemes spanning:
- Real estate scams
- Pump-and-dump operations
- Unregulated high-yield investment platforms
“Once somebody tells you they can give you something you know is not possible, know certainly that that is a fraud,” he warned.
Legal Backing and Enforcement
Citing the Investment and Securities Act No. 2 of 2025, Agama reiterated that SEC is the sole regulator of Nigeria’s capital market.
“Anyone who is involved in such activity and is not registered with the Commission is violating the law,” he said.
“If you’re unsure about an investment, contact the SEC. We have offices in Lagos, Kano, Port Harcourt, and Abuja.”
SEC to Launch Verification App and Short Code
To help investors verify operators in real time, the SEC is rolling out a digitisation drive, including:
- A dedicated mobile app for market information and alerts
- A short code system for checking the registration status of investment firms
“We want to provide Nigerians with tools to instantly verify the legitimacy of any investment operator,” Agama said.
Market Outlook and Ponzi Scheme Crackdown
Agama said the capital market’s value has surpassed ₦91 trillion, reflecting growing investor confidence and improved governance.
However, on July 15, the Commission confirmed it was investigating 79 suspected Ponzi schemes operating across the country.
“It is our responsibility as representatives of the Federal Government to moderate and protect the investment environment,” Agama added.
