The Securities and Exchange Commission (SEC) has issued a strong warning to social media influencers, bloggers, and celebrities to stop promoting unregistered investment schemes or face legal action.
The caution follows the recent enactment of the Investments and Securities Act (ISA) 2025, signed into law by President Bola Tinubu. The updated legislation clearly defines Ponzi schemes and grants the SEC authority to impose a minimum fine of ₦20 million and a 10-year prison sentence on promoters.
Emomotimi Agama, Director-General of the SEC, emphasized that the Commission is collaborating with the EFCC, Nigeria Police Force, and other law enforcement bodies to investigate and prosecute individuals or platforms violating the law.
“The law targets influencers and bloggers promoting fraudulent schemes, with penalties including imprisonment,” Agama said.
“We are therefore using this medium to warn such persons to desist from promoting unregistered entities.”
The warning comes after the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion through fake promises and deceptive marketing.
“We will shut down their operations, and the promoters will be made to face the full weight of the law,” Agama stated.
For the first time, the ISA 2025 also brings digital assets under the SEC’s regulatory authority. According to Agama, virtual assets are now classified as securities, and all Virtual Asset Service Providers (VASPs) and Digital Asset Exchanges must register with the Commission.
The SEC is also prioritising public education.
“We’ve launched a podcast to educate Nigerians on investment safety, and we’re integrating capital market education into schools and universities,” Agama said.
He urged the public to verify the registration of any investment opportunity with the SEC before investing.
“Once it is too good to be true, it certainly is not true,” he warned.
Agama added that the SEC has established special monitoring and inspection departments to detect and respond swiftly to potential fraud in the financial market.
“The ISA 2025 is a game-changer for investor protection and market growth,” he concluded.
