SEC Shuts Over 400 Fraudulent Investment Schemes

…Plans Regulatory Overhaul For Nigeria’s $96bn Crypto Market

…Warns Unregistered Schemes Pose Serious Risks For Investors

…Pledges Zero Tolerance For Financial Fraud

The Securities and Exchange Commission (SEC) has shut down more than 400 fraudulent investment schemes across Nigeria, signaling an intensified regulatory crackdown on illegal investment activities and a stronger push to protect investors.

Several suspects linked to these schemes are currently under prosecution, the commission confirmed.

The disclosure was made by SEC Executive Commissioner for Operations, Bola Ajomale, during the financial literacy forum “The Money Fair,” organized by Nairametrics in Lagos.

Ajomale, who represented SEC Director-General Dr. Emomotimi Agama, emphasized the regulator’s commitment to safeguarding market confidence amid a surge in unregulated investment platforms.

“Over the last three years, we have investigated and shut down at least 400 of these so-called schemes,” Ajomale said.

“We saw a tremendous increase in them last year, and a number of those involved have been arrested and prosecuted.”

If the investment product or the operator is not registered with the SEC, they have no business asking you to put your money there.”

The SEC has intensified its enforcement measures alongside public awareness campaigns to curb the proliferation of illegal investment platforms.

Initiatives such as the “See It, Snap It” campaign and the “SEC Scam Alert” platform have been introduced to enable Nigerians to report suspicious schemes quickly, allowing regulators to act before these operations expand.

Ajomale noted that the regulator has adopted a multi-pronged strategy combining investigations, arrests, and investor education to enhance market integrity.

“We are not just shutting down illegal schemes; we are also empowering investors with the knowledge to identify and avoid fraudulent operators,” he said.

The crackdown comes as unregulated investment products continue to pose significant risks to Nigerian investors, particularly amid rising interest in digital and alternative investment platforms.

Analysts have warned that investor protection and regulatory vigilance are critical to preventing large-scale financial losses and sustaining confidence in Nigeria’s capital markets.

This is just as Agama revealed plans to increase Nigeria’s market capitalisation-to-GDP ratio from its current level of 33 per cent to 92 per cent, matching the level recorded by India.

Agama made the disclosure on Tuesday during a Citizens’ and Stakeholders’ Engagement session held at the Federal Ministry of Finance in Abuja. The target forms part of the proposed 2026–2035 Capital Market Master Plan currently being developed.

The engagement was organised as part of the Ministry of Finance’s first-quarter 2026 citizens and stakeholders’ dialogue on the implementation of Presidential Priorities and Ministerial Deliverables.

The Permanent Secretary in the Federal Ministry of Finance, Raymond Omenka Omachi, explained that the forum serves as a platform for the ministry to brief citizens and stakeholders on its policies, programmes, and progress while encouraging transparency and open discussion.

According to Agama, the new capital market master plan will succeed the 2015–2025 framework and is intended to reposition Nigeria’s capital market as a credible destination among emerging markets.

Providing an overview of the commission’s performance, Agama said the capital market experienced notable growth during his tenure. He noted that market capitalisation increased by 125 per cent, rising from N55tn in April 2024 to N124tn by March 2025.

He explained that the expansion significantly improved the market’s contribution to the country’s economy.

“The growth in market capitalisation amounts to 33 per cent contribution to the national GDP from 13 per cent in 2024 when he took over office,” Agama said.

The SEC boss also revealed that between 2024 and March 2026, the commission facilitated capital raising worth N3.68tn through new issues in the market, with equities accounting for N3.62tn of the total.

Agama further highlighted the role played by the commission in supporting the Central Bank of Nigeria’s bank recapitalisation programme.

According to him, the SEC enabled the banking sector to raise more than N2.7 trillion, including N1.7 trillion specifically used to meet the CBN’s recapitalisation requirements.

He added that the recapitalisation exercise for capital market operators was concluded in January 2026.

The SEC DG also raised concerns about the scale of cryptocurrency activities in Nigeria, describing the sector as largely operating outside the formal regulatory framework. He disclosed that digital asset transactions worth over $96bn take place in the country each year.

To address this challenge, Agama said the commission introduced the Accelerated Regulatory Incubation Programme, which aims to gradually bring financial technology companies into the regulated financial ecosystem.

He also announced that the commission secured $400,000 in funding from the African Development Bank to acquire surveillance software that will strengthen market monitoring and regulatory oversight.

As the 2026–2035 master plan enters its transition phase, Agama said the commission’s broader objective is to close the gap between Nigeria and other emerging economies in terms of capital market development, investor participation, and institutional credibility.

India, which serves as a benchmark for the new plan, currently maintains a market capitalisation-to-GDP ratio of about 92 per cent—almost three times Nigeria’s present level—highlighting the scale of the commission’s ambition.