The Securities and Exchange Commission (SEC) has revealed that it is currently investigating 79 suspected Ponzi schemes operating illegally across Nigeria, as part of its intensified crackdown on fraudulent investment operations.
This disclosure was made over the weekend by the Director-General of the Commission, Lamido Yuguda, during a media briefing in Abuja. Yuguda expressed deep concern over the growing number of unregistered investment platforms luring unsuspecting Nigerians with unrealistic profit promises.
According to the SEC boss, the identified schemes are currently under surveillance and review, with some already facing prosecution. He warned the public to be cautious and avoid engaging with entities that are not registered with the SEC.
“We have 79 illegal fund managers on our watchlist, and we are working with relevant security and law enforcement agencies to shut them down and bring their promoters to justice,” Yuguda said.
He emphasized that many of these Ponzi operators use social media platforms and flashy endorsements to mislead the public. He also urged Nigerians to always verify the registration status of investment firms through the SEC’s official channels before committing their money.
The SEC DG also stressed the importance of financial literacy in curbing the spread of Ponzi schemes. “People need to understand that investment returns are proportional to risk. Any scheme that promises mouthwatering returns with little or no risk is a red flag,” he added.
Yuguda reaffirmed the Commission’s commitment to protecting investors and sanitizing the capital market, while calling on the public to report suspicious investment platforms.
The ongoing investigations signal a renewed effort by the SEC to restore investor confidence and curb the menace of financial scams threatening Nigeria’s economic stability.