Nigeria’s Securities and Exchange Commission (SEC) has issued a sweeping warning to social media influencers, bloggers, and celebrities, mandating an immediate halt to the promotion of unregistered investment schemes or face severe legal consequences, including imprisonment. The directive follows the enactment of the Investments and Securities Act (ISA) 2025, which empowers the SEC to impose a minimum fine of N20 million and a 10-year jail term on promoters of Ponzi schemes and unlicensed ventures.
Crackdown on Fraudulent Schemes
SEC Director-General Emomotimi Agama emphasized the commission’s collaboration with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other agencies to dismantle illegal operations. The warning comes amid the high-profile collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion through false promises of “doubled investments” and fabricated global affiliations. Agama vowed to shut down unregistered entities and prosecute promoters, stating, “We will deal decisively with anyone caught in this mess”.
Digital Assets Under Regulatory Umbrella
The ISA 2025 marks a pivotal shift by bringing digital assets, including cryptocurrencies and meme coins, under SEC oversight. Virtual Asset Service Providers (VASPs) and Digital Asset Exchanges must now register with the commission, closing loopholes previously exploited by fraudulent operators. Agama criticized influencers for endorsing speculative tokens and unlicensed platforms, warning that such actions fuel financial crimes like pump-and-dump schemes and Ponzi operations.
Education and Enforcement
To combat investor vulnerability, the SEC has launched educational initiatives, including podcasts and school-based programs, to teach Nigerians how to identify scams. Agama urged the public to verify the registration status of any scheme, stressing, “If it sounds too good to be true, it certainly is”. The commission has also established specialized departments to monitor markets, conduct inspections, and respond to fraud indicators in real time.
Legal Consequences for Violators
The ISA 2025 explicitly criminalizes the promotion of unregistered schemes, targeting both direct promoters and their social media enablers. Agama warned influencers to “desist or face imprisonment”, underscoring the SEC’s resolve to protect investors and stabilize Nigeria’s financial ecosystem. The law’s stringent penalties reflect growing regulatory frustration with the rise of digital fraud, particularly after the CBEX collapse triggered violent protests and office raids by defrauded investors.
This crackdown signals Nigeria’s commitment to aligning its financial regulations with global standards while addressing systemic risks posed by unregulated digital finance.