The Securities and Exchange Commission (SEC) of Nigeria has issued a strong public advisory against Property World Africa Network (PWAN) and its affiliate platform PWAN MAX, warning that both entities are operating illegal investment schemes that could defraud unsuspecting Nigerians.
In a detailed statement released on Tuesday, the Commission declared that PWAN and PWAN MAX are not registered or licensed to engage in any form of capital market activity in Nigeria, including soliciting investments from the public.
“The Commission hereby informs the public that PWAN/PWAN MAX are NOT REGISTERED by the Commission either to solicit investments from the public or operate in any other capacity within the Nigerian capital market,” the SEC said.
The warning followed multiple complaints and intelligence reports suggesting that the companies are offering investment products with unusually high returns—a major red flag commonly associated with Ponzi schemes. According to the SEC, there have been reports of failed withdrawal attempts, with investors unable to access their funds, further raising alarm.
“Investigations have revealed that PWAN’s operations exhibit the typical indicators of a fraudulent Ponzi scheme,” the Commission stated, urging the public to exercise extreme caution.
Ponzi schemes typically rely on funds from new investors to pay returns to earlier participants, creating a deceptive cycle that often collapses when new inflows dwindle. The SEC emphasized that any individual or group investing in PWAN or PWAN MAX is doing so “at their own risk.”
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In addition to the warning, the SEC reminded investors to verify the legitimacy of any investment platform before committing funds. The Commission’s online portal, www.sec.gov.ng/cmos, provides a registry of licensed capital market operators.
This development comes in the wake of a major financial scandal involving CBEX, another unregistered investment platform that recently collapsed, resulting in estimated losses of nearly ₦1.2 trillion and affecting more than 600,000 Nigerians.
The SEC had previously declared CBEX illegal, and the Economic and Financial Crimes Commission (EFCC) is currently investigating the platform’s operations.
CBEX lured investors with promises of 100% returns in 30 days through what it claimed was AI-powered trading. Despite being registered with the Corporate Affairs Commission (CAC) and the EFCC’s Special Control Unit Against Money Laundering, the platform had no SEC approval, underscoring the distinction between basic business registration and capital market licensing.
With the recent signing of the Investments and Securities Act (ISA 2025) by President Bola Tinubu, the SEC now has greater enforcement powers, including the ability to prosecute promoters of Ponzi schemes.
According to SEC Director General Dr. Emomotimi Agama, perpetrators now face up to 10 years in prison and ₦40 million in fines.
“The new law gives us the teeth we need to go after these fraudsters,” Agama said. “Ponzi schemes are a threat to financial stability and must be rooted out.”
Financial experts have lauded the SEC’s proactive stance. Dr. Okey Adibe, an economist and capital market analyst, said the crackdown is “long overdue” and urged greater public awareness.
“Too many Nigerians are falling victim to get-rich-quick schemes. The SEC’s advisory should serve as a wake-up call,” Adibe noted. “The public must learn to differentiate between legally backed investments and speculative scams.”
The SEC reiterated its commitment to protecting investors and stabilizing Nigeria’s capital market by clamping down on illegal operators and enhancing investor education.