SEC shuts down 400 fraudulent investment schemes in three years

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Emomotimi Agama, director-general (DG) of the Securities and Exchange Commission (SEC) says the regulator has shut down more than 400 fraudulent investment schemes across Nigeria in the past three years.

Agama, who spoke on Tuesday at the opening of the Nairametrics financial literacy forum tagged ‘The Money Fair,’ held in Lagos, said the action was to protect investors in the capital market.

The DG, who was represented by Bola Ajomale, executive commissioner for operations at the SEC, said the commission has intensified enforcement actions and investor awareness campaigns in response to the growing number of fraudulent investment schemes.

“Over the last three years, we have investigated and shut down at least 400 of these so-called schemes,” the SEC boss said.

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“We saw a tremendous increase in them last year, and a couple of them involved have been arrested and prosecuted.

“That is the direction we are heading as the SEC works to bring order and create a safe investment space for all of us.”

He said the commission has launched initiatives such as the “See It, Snap It” campaign and the “SEC Scam Alert” to enable Nigerians to easily report suspicious schemes and help regulators act swiftly.

The DG added that the commission has also directed operators in the market to clearly indicate their registration status.

According to Agama, the SEC has about 2,000 operators in the market and has instructed them to state whether they are registered with the commission.

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He advised Nigerians to always verify whether an operator offering an investment opportunity is registered before committing funds, adding that the investment product itself should also be registered with the SEC.

“If the investment product or the operator is not registered with the SEC, they have no business asking you to put your money there,” the DG said.

Also speaking, Ugodre Obichukwu, chief executive officer (CEO) of Nairametrics Financial Advocates Limited, said the Money Fair was created to help Nigerians move from simply consuming financial information to taking informed financial actions.

He highlighted current economic realities, including rising prices, exchange rate volatility, and global geopolitical tensions, as factors making financial education more urgent.

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“In times like this, financial literacy is not optional. It is essential for everyone,” Obichukwu said.

“So, the whole idea of WISE for us is essentially built on four key fields — wealth, investment, savings, and endowments.”

The CEO said the Money Fair was designed as a platform to promote the principles and empower Nigerians to make better financial decisions.

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