In a stark revelation, the Securities and Exchange Commission (SEC) has disclosed that Nigerians have lost an estimated N300.2 billion to fraudulent Ponzi and illegal investment schemes in recent years.

The announcement was made during the SEC’s 2025 Journalists Academy in Abuja by AbdulRasheed Dan-Abu, Head of the Commission’s Fintech and Innovation Department.

Breakdown of Major Losses

The massive figure was compiled from investigations into some of Nigeria’s most notorious collapsed schemes, which promised unsustainably high returns. Key offenders include:

• MBA Forex and Capital Investment Ltd: N213 billion
• Nospecto Oil and Gas: N45 billion
• MMM Nigeria: N18 billion
• Chinmark Group, Ovaioza Farm Produce, and Famzhi Interbiz: Over N24 billion combined

The SEC cautioned that these figures are not exhaustive, and the actual total loss is likely far higher due to many unreported cases, particularly in rural communities.

SEC’s Crackdown and Strategy

Disturbed by the persistence of these schemes, the SEC is intensifying its regulatory crackdown with a multi-pronged strategy:

• Enhanced Enforcement: Securing court orders to shut down unregistered entities and prosecuting operators.
• Inter-Agency Collaboration: Partnering with the EFCC, NFIU, and CBN to identify and freeze accounts linked to illegal operators.
• Tech-Driven Surveillance: Using advanced systems to track suspicious online investment ads on social media.
• Investor Education: Expanding public awareness campaigns on the dangers of unregistered schemes.

“The public is strongly advised to always confirm the registration status of any investment firm before engaging in financial transactions,” the SEC urged.

The Digital Asset Challenge

The SEC also addressed the risks in the rapidly growing digital finance space. Dr. Emomotimi Agama, the SEC Director-General, noted that over 80 million Nigerians are involved in crypto-related activities.

While this reflects “the creativity of our young people,” he warned it has also “created a fertile ground for exploitation” through scams and phishing attacks.

Agama outlined the SEC’s 2022 Rules on Digital Assets, which require Virtual Asset Service Providers (VASPs) to register with the SEC, comply with anti-money laundering laws, and maintain real-time transaction monitoring.

“Innovation must never outpace integrity,” Agama concluded, emphasizing that the SEC’s balanced approach aims to foster innovation while protecting investors and restoring public confidence in the financial system.