Securities and Exchange Commission (SEC) Director-General Dr. Emomotimi Agama warns that registration with the Corporate Affairs Commission (CAC) and the Economic and Financial Crimes Commission (EFCC) is not sufficient for operating an investment scheme in Nigeria. Only SEC registration guarantees legal operation. Nigerians are advised to be wary of firms claiming otherwise.
Speaking in Abuja on Wednesday, SEC Director-General Dr. Agama expressed concern over the prevalence of fraudulent investment schemes, particularly Ponzi schemes, targeting Nigerians. He stressed that the government will actively combat such schemes, highlighting the crucial need for Nigerians to only invest in ventures registered and regulated by the SEC. He emphasized the dangers of placing hard-earned money in unregistered or unregulated schemes. Agama reiterated the SEC’s commitment to educating the public about these risks.
“The Investments and Securities Act, recently signed into law, empowers us to combat fraudulent investment schemes like Ponzi schemes. This law mandates fines of up to N20 million and 10 years imprisonment for offenders. We’re using this outreach to educate Nigerians about legitimate investments and the dangers of fraudulent schemes. We understand the pain caused by these scams and are committed to helping people identify legitimate opportunities,” the official stated. “This includes working with CAC to prevent further victimization.”