The Securities and Exchange Commission (SEC) has issued a stern warning to celebrities, influencers, and bloggers against endorsing unregistered investment schemes, stating that violators will face severe legal consequences, including imprisonment.
This follows the signing of the new Investments and Securities Act 2025 into law by President Bola Tinubu. The Act, which clearly defines Ponzi schemes, empowers the SEC to impose a minimum fine of N20 million and a jail term of up to 10 years on those who promote such fraudulent ventures.
According to a statement released by the commission on Sunday, the law specifically targets individuals who use their platforms to advertise unregistered investment entities. SEC Director-General, Emomotimi Agama, emphasized that the commission is working closely with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other security agencies to investigate and prosecute offenders.
“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment,” Agama said.
He issued the warning in light of the collapse of CBEX, a digital investment platform that allegedly swindled Nigerians out of more than N1.3 trillion. Agama stated that the SEC has since intensified its clampdown on Ponzi scheme operators.
“We will shut down their operations and the promoters will be made to face the full weight of the law,” he added.
