Regulators deepen crackdown on illegal investment platforms as fraud risks rise amid economic pressure…..
The Securities and Exchange Commission has announced a strategic partnership with the National Orientation Agency to intensify nationwide public enlightenment campaigns against illegal investment schemes.
The development was disclosed by the SEC Director-General, Emomotimi Agama, during a meeting with NOA Director-General, Lanre Issa-Onilu, in Abuja on Thursday.
The collaboration comes amid rising concern over the spread of fraudulent financial platforms targeting Nigerians, particularly as economic pressures increase vulnerability to deceptive investment offers. The initiative signals a broader strategy that combines regulatory enforcement with large-scale public education to curb recurring Ponzi-style schemes and rebuild confidence in the regulated capital market.
Speaking at the meeting, Agama said the Commission is strengthening its fight against illegal investment schemes by leveraging the NOA’s nationwide communication network to expand investor education and awareness. He noted that economic hardship and financial illiteracy continue to make many Nigerians susceptible to fraudulent platforms.
According to him, while the capital market remains a key driver of national development, misinformation and low financial literacy are exposing citizens to exploitative schemes. He said the Commission is moving beyond enforcement toward preventive education, stressing that many victims fall prey not by choice but due to economic pressure and limited understanding of legitimate investment channels.
The SEC also warned that illegal schemes are evolving rapidly, making proactive communication and consistent public sensitisation essential to safeguarding investors.
Agama described the NOA’s grassroots presence as a strategic advantage in ensuring investor protection messages reach communities across the country, including both urban and rural populations. He noted that new fraudulent platforms continue to emerge frequently, often disguised as digital wealth-building opportunities, and stressed that enforcement alone cannot effectively address the problem without behavioural change and improved financial literacy.
Under the partnership, outreach will leverage NOA’s extensive communication infrastructure, including collaborations with 193 radio stations and five television stations nationwide. Engagement will also extend to religious centres, motor parks, community town halls, and other grassroots platforms to deepen awareness.
The SEC said stronger inter-agency cooperation will enhance the protection of citizens’ financial wellbeing while reinforcing trust in regulated financial markets.
Responding, Issa-Onilu commended the SEC for its role in strengthening Nigeria’s capital market but noted that its achievements are not widely recognised. He identified ignorance as a major driver of financial fraud and emphasised the importance of civic education in discouraging participation in deceptive investment schemes. He added that the growing societal preference for quick wealth often fuels demand for unregulated investments, making value reorientation a critical part of the collaboration.
Nigeria has witnessed a surge in illegal investment and Ponzi schemes in recent years, with fraudsters luring unsuspecting investors through promises of unrealistic returns. In March 2025, the Economic and Financial Crimes Commission identified 58 companies allegedly operating illegal Ponzi schemes, many of which were neither registered with the SEC nor the Central Bank of Nigeria.
Regulators have consistently urged Nigerians to verify the registration status of any investment platform with the SEC before committing funds, noting that many fraudulent firms operate outside regulatory oversight. Authorities have linked the rise in such schemes to economic hardship and limited investor awareness.
The SEC-NOA partnership is positioned as a preventive intervention aimed at strengthening financial literacy, promoting responsible investment behaviour, and reducing recurring financial losses among Nigerians.
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