Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has cautioned Nigerians against falling for the deceptive claims of companies that present their registration with the Corporate Affairs Commission (CAC) and possession of SCUML certificates from the Economic and Financial Crimes Commission (EFCC) as proof of legitimacy for operating investment schemes.

Speaking to journalists during a sensitisation tour at Garki Market in Abuja, Agama emphasised that such certifications do not equate to SEC approval, which is the only legitimate authorisation for investment operations in the country.

He expressed concern over the increasing number of fraudulent investment schemes targeting unsuspecting Nigerians, noting that both local and foreign entities have been exploiting regulatory gaps to run Ponzi schemes.

Agama stated that the government will no longer tolerate the loss of billions of Naira to these scams, reaffirming that the recently signed Investments and Securities Act mandates a fine of N20 million, and up to 10 years imprisonment for Ponzi scheme operators.

Highlighting SEC’s role in protecting investors, he said the commission’s outreach efforts are aimed at educating the public on how to identify red flags and avoid falling victim.

He reiterated that any company offering investment opportunities without SEC registration should be treated with suspicion, regardless of their CAC or EFCC credentials.

Training seminars and flashy presentations are tactics often used by these operators to lure people into illegal schemes, he warned, urging Nigerians to always verify the legitimacy of such investments with the SEC.

“It is disheartening that some Nigerians and foreign companies have specialised in duping Nigerians. The government will not sit and watch Nigerians being duped. This is why SEC is coming out to educate people that if ‘it is too good to be true’, then watch out,” Agama cautioned.

Assistant Director in SEC’s Enforcement Department, Tope Onwionoko, said the commission was committed to promoting financial literacy to combat the growing threat of Ponzi schemes.

She explained that the sensitisation campaign is targeted at all segments of society, from the wealthy to the poor, the elderly to the youth, “because the impact of these schemes is far-reaching.”

The DG said by starting from marketplaces, where everyday Nigerians engage in commerce, the commission hopes to spread awareness effectively.

Onwionoko noted that most victims of Ponzi schemes lack critical knowledge about how such scams operate.