The Securities and Exchange Commission (SEC) has warned Nigerians against investing in illegal online investment schemes promoted across social media platforms.

According to the SEC, many of them exhibit characteristics of Ponzi and prohibited investment operations.

In a public notice issued yesterday, the commission was worried about “the increasing promotion of unregistered online investment schemes on social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms”.

“Many of the investment schemes exhibit characteristics of Ponzi or prohibited investment schemes, while some operators of such schemes also provide unauthorised investment services to members of the public,” the commission said.

It advised Nigerians to refrain from investing in platforms promising unrealistic returns.

It stated: “Accordingly, the Commission hereby advises the public to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns.”

SEC also cautioned members of the public against relying on investment advisories circulated online by unregistered persons or entities.

It reminded Nigerians that under the Investments and Securities Act, only entities registered by the SEC are authorised to promote investment services, provide investment advisory services or solicit funds from the public in the Nigerian capital market.