By Abiodun Abdullai
The Securities and Exchange Commission (SEC) has revealed that Nigerians lost an estimated ₦300.2 billion to various fraudulent investment and Ponzi schemes in recent years, prompting the Commission to strengthen its enforcement and investor protection measures.
Speaking during the 2025 Journalists Academy in Abuja, AbdulRasheed Dan-Abu, Head of Fintech and Innovation at the SEC, said investigations traced the losses to several notorious illegal investment operations that targeted households and small investors across the country.
He noted that the ₦300.2 billion loss figure stemmed from collapsed schemes such as MMM Nigeria (₦18bn), Nospecto Oil and Gas (₦45bn), MBA Forex (₦213bn), and others including Chinmark Group, Ovaioza Farm Produce Storage Business, and Famzhi Interbiz Ltd, which collectively cost Nigerians over ₦24 billion.
"These figures reflect only a portion of the total losses. Many victims, particularly in rural areas, never report their experiences to regulators or law enforcement," Dan-Abu said.
According to the SEC, the persistence of these scams has compelled the Commission to adopt a multi-pronged strategy combining investor education, strict enforcement, and inter-agency collaboration with the EFCC, NFIU, and Central Bank of Nigeria (CBN).
Under the new crackdown, the SEC has begun securing court orders to shut down unregistered entities, prosecuting operators, and issuing public investor alerts naming firms involved in unlawful solicitation. The Commission has also enhanced its technology-based surveillance systems to track suspicious online investment advertisements, particularly across social media.
Read also
"The Commission remains committed to protecting investors through proactive regulation and strict enforcement actions against those who exploit public trust for illicit gain," SEC officials stated.
In a related address, Dr. Emomotimi Agama, Director-General of the SEC, represented by Mrs. Efe Ebelo, disclosed that over 80 million Nigerians now engage in crypto-related activities, reflecting both opportunities and growing risks in the digital asset market.
He warned that while digital assets offer innovation and inclusion, they have also created avenues for scams, phishing attacks, fake wallets, and ransomware.
"Without robust regulation, innovation becomes vulnerability. Regulation is not about restriction — it is about building trust and ensuring innovation serves progress, not predation," Agama said.
He explained that the SEC's 2022 Rules on Digital Assets require all Virtual Asset Service Providers (VASPs) to register, comply with Anti-Money Laundering laws, and maintain real-time monitoring systems to detect suspicious activity.
Agama added that through partnerships with the CBN, EFCC, and blockchain analytics firms, the SEC now deploys advanced tools to trace illicit digital transactions, freeze fraudulent accounts, and recover stolen funds.
As the SEC sustains its enforcement drive, analysts believe that the Commission's renewed vigilance — balancing investor education, regulatory oversight, and technology-driven monitoring — will help restore public confidence and curb investor exploitation in Nigeria's capital market.
