SEC Warns Nigerians as Investment Schemes Flood Social Media, Shares Link to Verify
- The SEC has alerted Nigerians about their rising use of social media for investment scam promotion
- It noted that many of the promoted investments on social platforms function as a Ponzi-like system
- The commission warned that some of the promoters claim they are registered but illegally run investment advisories
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Securities and Exchange Commission (SEC) has cautioned Nigerians against engaging in unregistered online investment schemes heavily promoted on social media platforms.
The Commission, in a public notice dated May 8, 2026, shared via its official X account, said these platforms lure investors with promises of unrealistic or guaranteed returns despite not being registered or authorised to operate in Nigeria’s capital market.
Source: Facebook
SEC warns against social media investment advisers
SEC revealed that the promotion of the investment schemes is done across platforms such as WhatsApp, Instagram, TikTok, Telegram, and Facebook.
The notice read in part:
"The attention of the Securities and Exchange Commission ("the Commission") has been drawn to the increasing promotion of unregistered online investment schemes on social media applications and websites. including WhatsApp. Instagram, Telegram, Facebook. TikTok and other digital platforms.
"Many of these investment schemes exhibit characteristics of Ponzi or Prohibited investment schemes, while some operators of such schemes also provide unauthorized investment services to members of the public."
The SEC warned that investing in these platforms carries the risk of severe financial losses, fraud, and other dangers, and emphasised that only entities duly registered with the Commission are permitted to offer investment services in Nigeria.
The Commission also advised the public to be wary of investment opportunities promising unrealistic returns and to verify the registration of any investment platform prior to depositing funds, Punch reports.
Source: Getty Images
It added:
"The Commission hereby advises the public to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns.
"Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the Commission, as reliance on such advisories may expose investors to significant financial losses and fraudulent schemes.
"The public is reminded that, under the provisions of the Investments and Securities Act, 2025, only entities registered by the Commission are authorised to promote investment services, provide investment advisory services or solicit funds from the public in the Nigerian capital market.
"The investing public is therefore advised to verify the registration status of any platform, company, or entity offering investment opportunities on the Commission's dedicated portal: https://sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators/ or https://www.sec.gov.ng/cmos before transacting or investing with them."
SEC warns Nigerians against using Voya Investment Management
In a related development, Legit.ng reported that the SEC has issued a public warning against an online investment platform operating under the name Voya Investment Management (VIM).
It noted that the company is not authorised to operate in Nigeria’s capital market.
According to the SEC, the operators of the platform have falsely presented themselves as being supervised by the Commission and have displayed a document described as a certificate of identity verification purportedly issued by the regulator.
Source: Legit.ng
