Amid growing concerns over the rising cases of investment fraud, the Securities and Exchange Commission (SEC) on Friday took its investor education drive to Wuse Market, Abuja, engaging traders directly on the dangers of Ponzi schemes and unregulated investment platforms.
Led by its Director General, Dr. Emomotimi Agama, the SEC team moved from stall to stall, distributing informational flyers and speaking with traders about how to identify and avoid fraudulent schemes. The campaign comes in response to increasing reports of unsuspecting Nigerians being lured into fake investment platforms such as the controversial Crypto Bridge Exchange (CBEX).
Dr. Agama told journalists that the exercise was a vital part of the Commission’s broader mission to protect the investing public and ensure that Nigerians are well-informed before committing their funds.
“Nigerians have lost over $1.3 trillion to CBEX alone,” he revealed. “It is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC.”
Addressing the traders, Dr. Agama said:
“We are happy that we have come out here to inform them and more importantly, they are now being enlightened to the effect that if it is too good to be true, then it is not good—certainly, it is not true. They encouraged us to come back again on this journey, and we have also encouraged them to inform more people around them about the dangers of Ponzi schemes.”
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He explained that the decision to engage traders directly stemmed from the realization that many people at the grassroots level lack access to critical investment-related information.
“We decided to do this sensitization in the market because we discovered that it is difficult for people to get the information that will protect them,” Agama said.
“Sitting in our offices and requiring them to go to our website or call us may not be the best way. We needed to come out and let them know the dangers of Ponzi schemes.”
Painting a stark picture of the consequences, the SEC boss added:
“The danger is real. You could lose all your money. You could fall into ill health from the stress. When that happens, you risk destroying your family, your foundation, your business—even your nation.”
Dr. Agama reaffirmed the Commission’s resolve to eliminate all forms of illegal investment operations in Nigeria.
“President Bola Ahmed Tinubu has signed into law the new ISA 2025. Now, anyone involved in Ponzi schemes—whether influencers, bloggers, accomplices, or anyone else—faces a 20 million naira fine and up to 10 years in jail.”
He emphasized that the SEC would not limit its awareness efforts to just markets.
“We will not stop here. We will go to every market we can reach—every nook and cranny of this country. We will visit churches, mosques, hospitals, even the navy. We want everyone to hear this message. It is never too late. When you wake up, that is your morning. Now that you are educated, you can protect yourselves and others. Ponzi schemes are a global problem, but together, we can fight them here.”
Dr. Agama concluded with a call for partnership in the fight against scams:
“The SEC of today is reaching out like never before. We will continue to do this, but we need your help to spread the information. Together, we will be better off.”
Also speaking during the outreach, the Commission’s Executive Commissioner for Legal and Enforcement, Ms. Frana Chukwuogor, advised traders to avoid schemes that promise unrealistic returns.
“Ponzi schemes are illegal investment behaviors that build on nothing,” she said.
“We need to enlighten Nigerians about the dangers of Ponzi, and we think going all out to enlighten women will make our job easier.”
She noted that SEC’s presence at the market was to provide resources to help protect investors.
“We want to strengthen investors in their knowledge and understanding of the capital market. We want people to invest, but they should verify with SEC first.”
During the campaign, several traders shared their bitter experiences with CBEX, lamenting how the platform crashed with their savings. The outreach ended with many pledging to educate others within their circles and urging the SEC to continue the awareness drive across other local markets.
