CAC, EFCC Certification Don’t Confer Legitimacy on Investment Schemes, SEC Warns Nigerians
Recently, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, issued a warning to Nigerians, urging them to be cautious of firms that claim their registration with the Corporate Affairs Commission (CAC) and Special Control Unit against Money Laundering (SCUML) certification by the Economic and Financial Crimes Commission (EFCC) entitles them to operate investment schemes in the country.
Speaking during a sensitisation tour against Ponzi schemes at Garki Market in Abuja, Dr. Agama expressed disappointment over the proliferation of fraudulent schemes designed to deceive Nigerians. He stressed that it is imperative for Nigerians to be aware of the risks associated with investing hard-earned money in ventures that are not recognized or regulated by the SEC.
Dr. Agama stated, “It is disheartening that some firms have specialized in duping people through Ponzi schemes. The government will not sit by and watch while Nigerians are defrauded. This is why the SEC is reaching out to educate the public—if it sounds too good to be true, then it probably is.”
He highlighted that the Investments and Securities Act, recently signed into law by the president, provides a framework to penalize offenders of Ponzi schemes with a fine of N20 million and 10 years imprisonment. This legislation empowers the SEC to take decisive action against fraudulent investment schemes that harm the economy.
“Our sensitisation outreach aims to inform the public,” Agama continued. “We want to assist them in identifying legitimate investment opportunities and address their concerns. As such, registration with the CAC or possession of an EFCC certificate is insufficient to establish legitimacy. These can be seen as red flags.”
Agama cautioned against training programmes organized by fraudulent entities to lure unsuspecting individuals. He encouraged Nigerians to verify the authenticity of any investment scheme before committing their funds.
Adding further, Tope Onwionoko, Assistant Director of the Enforcement Department at SEC, emphasized the importance of financial literacy. She noted that scams like Ponzi schemes thrive due to public ignorance and economic hardship, which make people vulnerable to deceit.
Onwionoko remarked, “We want everyone—young and old, rich and poor—to understand what to look for, the potential red flags, and the associated dangers. Our goal is to drive perpetrators of Ponzi schemes out of business, making it clear that this will no longer be sustainable.”
She urged that individuals often fall victim to these schemes due to lack of knowledge. “Economic challenge plays a role, but ignorance is the greater threat. Even in difficult times, one should avoid avenues that result in financial loss,” she asserted.
The SEC’s campaign is part of a broader effort to enhance financial education across Nigeria and to protect citizens from fraudulent investment practices. The call to action is clear: verify before investing and stay informed to safeguard personal finances against scams.
