The Securities and Exchange Commission (SEC) has reported that Nigerians have lost over ₦316 billion to Ponzi schemes and unregistered fund managers, underscoring the need for increased vigilance and regulatory compliance.
During a training session for finance journalists in Abuja, AbdulRasheed Dan-Abu, Head of the SEC’s FinTech and Innovation Department, explained that Ponzi schemes operate by using funds from new investors to pay earlier participants, without any legitimate business activity.
He cited several high-profile cases, including MMM Nigeria, which accounted for ₦18 billion in losses, and New Nation, Women in Oil, which misled 155,000 rural women. Other schemes, such as Cow Lane, Durrell Nigeria Ltd, Now-Now Alert, G-Circle Investment, Box Value Trading, Yuan Dong, Famzi Intbiz, Bara Finance, Galaxy Construction, and Nospecto Oil and Gas, contributed to the cumulative losses. One ongoing investigation involves a scheme with losses exceeding ₦174 billion.
Dan-Abu noted that many of these schemes use aggressive social media marketing and WhatsApp groups to attract unsuspecting investors with promises of high returns and minimal risk. He advised the public to confirm the registration status of any investment with the SEC before committing funds.
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He also called on journalists to support public awareness efforts, emphasizing that consistent reporting can help prevent future losses and protect vulnerable individuals.
In a related address, SEC Director-General Dr. Emomotimi Agama, represented by Efe Ebelo, stressed the importance of regulating digital assets. He said Nigeria’s high adoption rate of crypto-related platforms has created opportunities for fraud, phishing, and fake wallet applications.
Agama reaffirmed the SEC’s commitment to enforcing its 2022 digital asset rules, which include licensing requirements, anti-money laundering compliance, and transaction transparency. He added that the Commission is collaborating with the Central Bank of Nigeria and the EFCC to freeze illicit wallets and recover stolen funds using blockchain analytics.
The SEC concluded that safeguarding the financial system requires a balance between innovation and investor protection.
