The Securities and Exchange Commission (SEC) says it has shut down more than 400 fraudulent investment schemes nationwide, with several suspects currently facing prosecution, as part of efforts to protect investors and boost confidence in the financial market.
The disclosure was made by the SEC Executive Commissioner for Operations, Bola Ajomale, at the Nairametrics financial literacy forum, “The Money Fair,” held in Lagos on Tuesday.
Representing the SEC Director-General, Dr. Emomotimi Agama, Ajomale said the commission has intensified enforcement in response to the growing number of unregulated investment platforms in the country.
He revealed that, over the past three years, the SEC has investigated and shut down at least 400 fraudulent schemes, with a sharp surge recorded in the past year. Several individuals linked to the operations, he added, have been arrested and are currently being prosecuted.
Ajomale cautioned Nigerians to exercise due diligence when investing, stressing that any individual or organisation not registered with the SEC is not authorised to solicit funds from the public.
To strengthen enforcement, he noted that the commission has introduced initiatives such as the “See It, Snap It” campaign and the “SEC Scam Alert” platform, which enable the public to report suspicious investment activities promptly.
“Over the last three years, we have investigated and shut down at least 400 of these so-called schemes. We saw a tremendous increase in them last year, and a number of those involved have been arrested and prosecuted,” Ajomale said.
“If the investment product or the operator is not registered with the SEC, they have no business asking you to invest your money,” he added.
The SEC’s actions come amid rising concerns over investor protection, as fraudulent schemes continue to lure unsuspecting Nigerians with promises of high returns.
Stakeholders at the event emphasised the importance of financial literacy in helping individuals make informed investment decisions and avoid scams.
Chief Executive Officer of Nairametrics Financial Advocates Limited, Ugodre Obichukwu, said the “Money Fair” initiative aims to bridge the knowledge gap in wealth creation by equipping Nigerians with practical financial insights. He noted that economic pressures such as rising prices and exchange rate volatility have made financial education increasingly urgent.
Also speaking, Chairman of FCMB Group Plc, Bolaji Balogun, highlighted the role of innovation and entrepreneurship in driving economic growth and reducing poverty.
Participants at the forum agreed that improved financial literacy remains critical to helping Nigerians identify legitimate investment opportunities and avoid fraudulent schemes, particularly in a challenging economic climate.
