The Securities and Exchange Commission (SEC) has shut down more than 400 fraudulent investment schemes across Nigeria, with several suspects currently facing prosecution, in a sweeping crackdown aimed at protecting investors and restoring confidence in the capital market.

The disclosure was made by the SEC’s Executive Commissioner for Operations, Bola Ajomale, during the opening of the Nairametrics financial literacy forums; “The Money Fair,” held in Lagos on Tuesday.

Ajomale, who represented the SEC Director-General, Emomotimi Agama, said the commission had significantly intensified enforcement actions in response to a surge in unregulated investment activities and widespread concerns about investor protection.

“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,” he said.

He warned investors to exercise caution, stressing that unregistered operators have no legal basis to solicit funds from the public. “If the investment product or the operator is not registered with the SEC, they have no business asking you to put your money there,” Ajomale added.

The SEC also highlighted its growing use of technology and public engagement tools to combat fraud. Initiatives such as the “See It, Snap It” campaign and the “SEC Scam Alert” platform have been introduced to enable Nigerians to report suspicious investment schemes quickly, allowing regulators to respond before such operations expand.

Stakeholders at the event emphasised that financial literacy remains a critical defence against fraudulent schemes, particularly as Nigeria faces economic pressures including rising inflation, exchange rate volatility, and global uncertainties.

Chief Executive Officer of Nairametrics Financial Advocates Limited, Ugodre Obichukwu, said the “Money Fair: 1.0” initiative was designed to bridge knowledge gaps in wealth creation and provide practical financial insights to Nigerians.

According to him, improving access to reliable financial information is essential for helping individuals make informed investment decisions and avoid falling victim to fraudulent schemes.

Also speaking, Chairman of FCMB Group Plc, Bolaji Balogun, underscored the role of innovation and entrepreneurship in driving economic growth and reducing poverty. He noted that fostering enterprise development remains key to job creation and long-term economic stability.

Participants at the forum agreed that financial literacy is a major differentiator in today’s uncertain economic climate, determining who can effectively seize opportunities and who remains vulnerable to financial losses.

Recent high-profile Ponzi scheme collapses have reportedly led to billions of naira in losses for Nigerian investors, prompting regulators to strengthen oversight and enforcement. In response, the SEC has enhanced its regulatory framework, increased collaboration with law enforcement agencies, and intensified public awareness campaigns.

The commission also continues to publish investor alerts and maintain an updated list of illegal operators to guide the public.

As part of its ongoing efforts, the SEC reiterated that verifying the registration status of any investment firm or product remains the most effective safeguard against fraud, urging Nigerians to remain vigilant as it works to restore stability and trust in the capital market. (Nigerian Tribune)

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