The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has cautioned Nigerians against trusting investment firms that are not registered or regulated by the SEC, stressing that registration with the Corporate Affairs Commission (CAC) and possession of a SCUML certificate from the Economic and Financial Crimes Commission (EFCC) do not constitute proper regulatory approval.

Speaking to journalists on Wednesday during a sensitisation tour against Ponzi schemes at Garki Market in Abuja, Agama emphasized the need for Nigerians to verify the legitimacy of investment platforms before putting their money at risk.
“It is disheartening that some individuals and foreign entities are actively defrauding Nigerians. The government cannot stand by and allow this to continue,” he said. “This is why SEC is engaging directly with the public—to raise awareness and protect people from falling victim to fraudulent schemes. If something sounds too good to be true, it probably is.”
Agama highlighted the new legal framework under the Investments and Securities Act, recently signed into law by the President, which prescribes a ₦20 million fine and up to 10 years imprisonment for those found guilty of running Ponzi schemes.
He noted that the sensitisation campaign is part of SEC’s broader effort to inform the public, support victims, and expose red flags in illegal schemes. “We are here to help people confirm which investments are legitimate. We feel their pain, and through education, we are empowering them to make safer financial decisions,” he said.
Agama warned that promotional training programmes used by fraudulent operators to lure victims are also illegal. “CAC registration and EFCC certification do not equal SEC approval,” he reiterated. “Always verify before investing.”
Supporting the initiative, SEC’s Assistant Director in the Enforcement Department, Tope Onwionoko, stressed the Commission’s commitment to financial literacy, especially in curbing the spread of Ponzi schemes, which he described as a growing threat to society.

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