The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has urged Nigerians to be wary of fraudulent investment schemes that promise unrealistic returns.

Speaking on Channels Television’s Business Morning programme, Agama explained that Ponzi schemes thrive on deception and unsustainable promises. He cautioned investors to always remember that “if it is too good to be true, it certainly is not true.”

He clarified that registering a business with the Corporate Affairs Commission (CAC) does not make it a legitimate investment company. According to him, only registration and licensing by the SEC confirms the authenticity of firms operating in the capital market.

The SEC boss revealed that the Commission has so far issued over 85 public advisories against fraudulent operators. His warning comes months after the Economic and Financial Crimes Commission (EFCC) listed 58 illegal Ponzi operators, some of whom have already been charged to court.

Agama also highlighted the SEC’s ongoing digitisation drive which will allow the public to easily verify the status of investment firms. Plans include the launch of a USSD verification code and a mobile application to provide investors, especially in remote areas, with faster access to reliable information.

He added that the recently enacted Investment and Securities Act 2025 gives the Commission stronger powers to prosecute offenders. The law prescribes prison terms of up to 10 years and fines ranging from ₦20 million to ₦1 billion for operators and promoters of unregistered investment schemes.

Agama reaffirmed the SEC’s commitment to investor education and protecting market integrity, particularly in the fast-growing digital asset space. He stressed that Virtual Asset Service Providers must comply with strict governance, cybersecurity, and disclosure requirements before being allowed to operate.

The SEC boss urged Nigerians to always verify the status of any investment platform with the Commission before putting in their money, warning that failure to do so could result in devastating financial losses.