As social media continues to play a key role in how businesses grow and connect with customers in Nigeria, a disturbing trend is threatening the livelihood of many small-scale entrepreneurs — identity theft through fake online accounts.

Across platforms like TikTok, Instagram, and Facebook, fraudsters are increasingly impersonating legitimate business owners. By copying names, photos, logos, and branding, these criminals trick unsuspecting buyers into paying for products that never arrive. The real business owners are then left to deal with the fallout — lost trust, financial loss, and, in some cases, legal trouble.

This form of impersonation is becoming more common, especially among youth-led businesses that rely heavily on digital platforms for marketing and sales. Despite the growing number of cases, social media companies are often slow to respond to reports, and Nigeria’s legal system has few effective ways to address such cybercrimes.

One entrepreneur who experienced this first-hand is Chinedu Daniel Akanigwo, aka Hairbyhairboy. Known for starting his hair business at the age of 13, Chinedu built a strong brand reputation over the years, attracting loyal customers and a wide online following. However, in late 2023, his business was thrown into chaos when he was wrongfully arrested.

According to Chinedu, a fake TikTok account had been created using his name, photos, and business information. The impersonator collected payments from unsuspecting customers for hair products, then disappeared without delivering any goods. Angry buyers, believing they had been scammed by the real Chinedu, filed complaints with the police.

“The police came to my shop and arrested me,” he recalled. “I was confused and shocked. I had no idea what they were talking about until much later, after hours in custody, when it became clear someone was pretending to be me online.”

He was taken to the Ikeja Police Headquarters in Lagos, where he spent hours answering questions in uncomfortable conditions. It was only with the help of his lawyer that the truth came out, and he was released. Still, the damage had been done — emotionally and professionally.

Even now, Chinedu continues to battle with fake accounts misrepresenting his business. Despite repeatedly reporting them, the response from social media platforms is slow, and in some cases, nonexistent.

“I just want people to know how serious this is,” he said. “One fake account almost ruined everything I’ve worked for.”

His experience is shared by many others. Digital rights advocates say the current system offers little protection to entrepreneurs. Most platforms reserve verification badges and faster support for celebrities or large corporations, leaving small businesses vulnerable.

Legal experts also point out that while Nigeria has laws like the Cybercrime Act, enforcement is inconsistent and slow. Victims of online impersonation often have to spend their own money pursuing justice — if they can afford it at all.

The Nigerian tech and business community is calling for urgent reform. Suggestions include creating faster and easier verification options for small businesses, increasing awareness among social media users, and training law enforcement agencies to handle digital fraud more effectively.

In the meantime, entrepreneurs like Chinedu are left to navigate the dangers of the online marketplace alone.

“It’s not just about selling anymore,” he said. “Now, we have to protect our names, our photos, and our entire identity every day.”

As Nigeria’s digital economy continues to grow, the threat of online impersonation will only become more urgent. Without stronger protections, many honest business owners could find themselves facing not just financial loss, but criminal accusations for crimes they never committed.