More than 400 illegal investment schemes shut down by SEC in three years

The Securities and Exchange Commission (SEC) has shut down more than 400 fraudulent investment schemes across Nigeria in the last three years as part of an intensified crackdown on financial scams targeting unsuspecting investors.

Director-General of the commission, Emomotimi Agama, disclosed this on Tuesday at the opening of the The Money Fair organised by Nairametrics in Lagos.

Agama, who was represented by SEC Executive Commissioner for Operations Bola Ajomale, said the regulator has stepped up enforcement actions and investor education efforts in response to the proliferation of illegal investment operations nationwide.

According to the SEC chief, the commission has actively investigated and dismantled hundreds of schemes masquerading as legitimate investment opportunities.

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

Agama noted that the number of fraudulent platforms surged significantly in the past year, prompting stronger regulatory action. He added that several individuals behind such operations have already been arrested and prosecuted.

He emphasized that the SEC remains committed to sanitising the capital market and ensuring a safer environment for investors.

To strengthen surveillance and public participation, the commission has introduced reporting initiatives designed to help Nigerians flag suspicious activities quickly.

According to the DG, these tools enable citizens to report dubious schemes easily, allowing regulators to intervene before widespread losses occur.

Agama also revealed that the SEC has directed all operators in the capital market to clearly state their registration status.

The commission currently supervises about 2,000 registered operators and has mandated them to indicate whether they are licensed by the regulator.

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He urged Nigerians to exercise due diligence before investing, stressing that both the company and the investment product must 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,” he warned.

Also speaking at the event, Ugodre Obichukwu, Chief Executive Officer of Nairametrics Financial Advocates Limited, said the Money Fair was designed to move Nigerians beyond merely consuming financial news to taking informed financial decisions.

He pointed to current economic pressures — including inflation, exchange rate volatility, and global uncertainties — as reasons financial literacy has become more critical than ever.

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

He explained that the initiative is built around four pillars captured in the acronym WISE — Wealth, Investment, Savings, and Endowments — aimed at empowering citizens to build financial resilience.

The forum served as a platform to promote responsible investing and protect Nigerians from the growing threat of Ponzi-style schemes that often promise unrealistic returns.

Regulators and financial experts at the event stressed that informed decision-making remains the strongest defence against financial fraud.