The Securities and Exchange Commission has warned Nigerians to stay away from unregistered investment platforms spreading rapidly across social media, saying many operate like Ponzi schemes.

In a public notice issued on May 8, the regulator said several online platforms promising guaranteed or unusually high returns are not licensed to operate in Nigeria’s capital market.

According to the commission, the schemes are heavily promoted on platforms such as WhatsApp, Instagram, Telegram, Facebook, and TikTok.

“The attention of the Securities and Exchange Commission has been drawn to the increasing promotion of unregistered online investment schemes on social media applications and websites,” the SEC stated.

The agency warned that many of the operators provide unauthorised investment services and could disappear with investors’ money. It advised Nigerians to treat promises of unrealistic profits as major warning signs.

The SEC also urged the public not to rely on financial advice from unlicensed individuals or organisations, stressing that only registered operators are legally allowed to offer investment services in Nigeria.

Before investing, Nigerians were advised to confirm the registration status of any company or promoter through the SEC’s official verification portal.