SEC dismantles over 400 fraudulent investment schemes in 3 years

NIGERIA’s Securities and Exchange Commission (SEC) says it has shut down more than 400 fraudulent investment operations nationwide within the last 3 years, as part of its push to safeguard investors and sanitise the capital market.

The disclosure was made by the commission’s Director-General, Emomotimi Agama, during the opening session of the Nairametrics financial literacy forum, ‘The Money Fair,’ held in Lagos on Tuesday. Agama was represented at the event by SEC’s Executive Commissioner for Operations, Bola Ajomale.

According to the regulator, enforcement efforts have been significantly ramped up alongside expanded investor education campaigns, following a surge in dubious investment platforms.

“Within the past three years, we have investigated and shut down no fewer than 400 of these schemes,” the SEC chief stated, noting that incidents rose sharply last year, with some perpetrators already facing arrests and prosecution.

He added that the commission remains committed to restoring confidence in the market by strengthening oversight and ensuring a more secure investment environment.

READ ALSO: NGX delists 8 firms in 2025 as market cleanup continues

As part of its response strategy, the SEC has introduced reporting tools such as the ‘See It, Snap It’ initiative and the ‘SEC Scam Alert’ platform, designed to help Nigerians flag suspicious investment activities for quick regulatory action.

The commission has also directed all capital market operators to clearly disclose their registration status. Agama said the SEC currently oversees about 2,000 operators and has mandated transparency to help investors distinguish legitimate firms from fraudulent ones.

He urged the public to carry out due diligence before investing, stressing that both the operator and the investment product must be registered with the SEC.

“If either the product or the promoter is not registered with the SEC, investors should steer clear,” he warned.

Speaking at the event, Chief Executive Officer of Nairametrics Financial Advocates Limited, Mr Ugodre Obichukwu, said the Money Fair was designed to bridge the gap between financial knowledge and practical decision-making.

He pointed to rising inflation, exchange rate instability, and global uncertainties as reasons financial literacy has become increasingly critical.

“In today’s environment, financial literacy is no longer a luxury – it is a necessity for everyone,” Obichukwu said, explaining that the initiative is built around four pillars: wealth, investment, savings, and endowments.

He added that the platform aims to equip Nigerians with the knowledge and tools needed to make smarter financial choices.