The Securities and Exchange Commission (SEC) has issued a stern warning to social media influencers, bloggers, and celebrities against promoting unregistered investment platforms, cautioning that violators risk hefty fines and imprisonment under the newly enacted Investments and Securities Act (ISA) 2025.
The warning, contained in a statement made available to The PUNCH on Sunday, follows the signing of the ISA 2025 into law by President Bola Tinubu. The law introduces sweeping reforms to Nigeria’s capital markets, including a clear definition of Ponzi schemes and new enforcement powers for the Commission.
According to the SEC, promoters of fraudulent investment schemes now face a minimum fine of ₦20 million and up to 10 years in prison. The law also directly targets individuals who use their platforms to endorse or advertise such illegal ventures.
“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment,” said SEC Director-General Emomotimi Agama. “We are therefore using this medium to warn such persons to desist from promoting unregistered entities.”
Agama disclosed that the SEC is working closely with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other law enforcement agencies to investigate and prosecute offenders.
The crackdown comes in the wake of the collapse of CBEX, a digital investment platform accused of defrauding Nigerian investors of over ₦1.3 trillion through promises of exaggerated returns and fabricated global partnerships.
“We will shut down their operations and the promoters will be made to face the full weight of the law,” Agama said, adding that the Commission is intensifying its scrutiny of digital investment platforms.
For the first time, the ISA 2025 brings digital assets and virtual investment products under formal regulatory oversight. Virtual Asset Service Providers and Digital Asset Exchanges are now required to register with the SEC and adhere to its compliance framework.
“Virtual assets are now officially recognised as securities,” Agama stated. “We will not tolerate non-compliance in this area.”
Investor education remains central to the Commission’s strategy. The SEC has launched a podcast aimed at educating Nigerians about the risks of unregistered schemes and is working to integrate capital market education into school curricula.
“We are building awareness to ensure people understand what safe investing looks like,” Agama said. “Once it is too good to be true, it certainly is not true.”
The Commission has also established specialised units for market surveillance and fraud detection, including a monitoring department and an inspection team tasked with conducting onsite investigations.
Agama reaffirmed the SEC’s commitment to investor protection and market integrity, describing the new legislation as a landmark in the country’s financial reforms.
“The capital market helps to democratise wealth,” he said. “The ISA 2025 represents a significant step forward in safeguarding investors and fostering a resilient financial ecosystem in Nigeria.”
The SEC urged members of the public to verify the registration status of any investment platform with the Commission before committing their funds.