The Securities and Exchange Commission (SEC) has revealed that Nigerians have lost approximately ₦316 billion to Ponzi-style investment schemes and unregulated fund managers over recent years.
At a press briefing, SEC officials noted that despite regulatory warnings and public education efforts, many Nigerians continue to be attracted to “get-rich-quick” offers.
The losses span a wide range of schemes, online platforms promising double returns to informal cooperative models that have collapsed and have been exposed as pyramid-like.
The SEC emphasised that such schemes not only drain savings but also undermine investor confidence in legitimate capital markets. The regulator warned that platforms operated without proper registration or oversight pose severe risks to ordinary investors.
To combat the trend, the SEC reiterated that all investment products must be registered or approved, and urged individuals to verify offerings via official regulatory channels before participating. It also called for stronger enforcement actions and the creation of a national compensation framework for victims.
Financial experts say the root causes include high inflation, unemployment, declining real incomes, and a cultural shift where online testimonials and referral rewards drive uptake more than fundamentals.
They recommend improved financial literacy programs, stricter regulation of digital assets, and enhanced support for regulated savings vehicles.