The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has cautioned Nigerians to be wary of companies claiming legitimacy based solely on registration with the Corporate Affairs Commission (CAC) and certification from the Special Control Unit against Money Laundering (SCUML) under the Economic and Financial Crimes Commission (EFCC).
Speaking during a public awareness campaign at Garki Market in Abuja, Dr. Agama emphasized that such registrations do not authorize any firm to operate investment schemes in Nigeria. He warned that fraudulent schemes, particularly Ponzi operations run by both local and foreign entities, have defrauded many Nigerians of their savings.
Dr. Agama described the growing trend of financial scams as alarming, stating that the government is now taking a firm stance to prevent further loss of public funds. He stressed the importance of verifying any investment opportunity with the SEC before committing funds.
“It is unfortunate that some individuals and companies are exploiting unsuspecting Nigerians with too-good-to-be-true offers,” Agama said. “With the newly signed Investments and Securities Act, those involved in Ponzi schemes face up to 10 years in prison and fines of up to N20 million. This gives us greater authority to shut down fraudulent operations.”
The SEC boss explained that the sensitization initiative was aimed at educating the public and helping them distinguish between legitimate and fraudulent schemes. He reassured Nigerians of the Commission’s commitment to protecting investors by providing the necessary resources to verify the credibility of investment platforms.
“People need to understand that having a CAC registration or an EFCC certificate does not mean a company is approved by SEC to collect money from the public for investments. These are warning signs,” he added. “We’ve also seen illegal training events designed to lure people into these scams. Our message is simple—verify before you invest.”
Also speaking at the event, Tope Onwionoko, Assistant Director in the SEC’s Enforcement Department, reiterated the Commission’s dedication to increasing financial literacy, particularly around the dangers of Ponzi schemes.
“Our goal is to ensure that every Nigerian—young or old, rich or poor—is informed about these scams,” she stated. “We deliberately chose to start in the markets, given the vital role traders play in the economy. We want them to recognize the red flags and protect themselves.”
Onwionoko added that many victims of these schemes often lack sufficient knowledge about how they operate, which leaves them vulnerable.
“Economic hardship may be a factor, but the root problem is usually a lack of awareness,” she explained. “Even when money is tight, people wouldn’t fall into these traps if they understood the risks. That’s why we’re taking this campaign directly to the people—so they can recognize when someone is trying to deceive them.”
