The Securities and Exchange Commission has warned Nigerians against investing in unregistered online investment schemes being aggressively promoted on social media platforms, cautioning that many of them exhibit characteristics of Ponzi schemes.

The warning was contained in a public notice dated May 8, 2026, and published on the Commission’s official communication channels.

Several of the online platforms promising guaranteed or unrealistic returns are neither registered nor authorised to operate within Nigeria’s capital market.

The schemes are being widely promoted on digital platforms, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other social media channels.

“The attention of the Securities and Exchange Commission has been drawn to the increasing promotion of unregistered online investment schemes on social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms,” the SEC stated.

Many of the schemes display features commonly associated with Ponzi or prohibited investment arrangements, while some operators also provide unauthorised investment services to unsuspecting members of the public.

Investors who patronise such platforms risk losing their funds to fraudulent operators, as promises of unusually high or guaranteed returns should be treated as red flags.

Nigerians should avoid participating in unregistered online investment schemes and refrain from relying on financial advice from unlicensed individuals or entities.

Only operators registered with the SEC are legally permitted to provide investment and advisory services within Nigeria’s capital market.

Prospective investors should verify the registration status of any investment company, platform or promoter before committing funds.

“The investing public is advised to confirm the status of companies and entities offering investment opportunities through the Commission’s dedicated verification portal before transacting with them,” the SEC stated.