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  • SEC warns Nigerians against suspected Ponzi scheme Tofro.com

    SEC warns Nigerians against suspected Ponzi scheme Tofro.com

    The Securities and Exchange Commission (SEC) has alerted Nigerians to the operations of an unregistered online investment platform identified as TOFRO.COM, also known as Tofro, describing it as a suspected illegal scheme aimed at defrauding unsuspecting investors through promises of high returns.

    In a notice issued on Thursday and made available to journalists, the Commission drew public attention to the activities of the platform, which claims to be a cryptocurrency trading site.

    SEC declared that Tofro is not registered to operate within the Nigerian capital market, nor is it licensed to solicit investments from the public.

    The regulatory body stated that its investigations had uncovered several red flags associated with Tofro’s operations.

    According to the SEC, these include promises of unusually high investment returns, a business model sustained primarily through referral incentives, and the platform’s consistent failure to honour withdrawal requests made by its subscribers.

    “These features,” the Commission noted, “are typical indicators of a fraudulent Ponzi scheme.”

    The Commission, therefore, cautioned members of the public to refrain from dealing with Tofro or placing funds in the hands of its promoters. It reiterated that anyone who chooses to invest with the platform does so at their own risk.

    To guide the investing public, the SEC urged Nigerians to verify the legitimacy of any investment platform by checking its registration status through the Commission’s dedicated portal: www.sec.gov.ng/cmos.

    The Director-General of the SEC, Dr. Emomotimi Agama, reiterated the need for vigilance among investors. He noted that with the rising popularity of digital investment platforms, Nigerians must be particularly careful not to fall prey to scams disguised as legitimate opportunities.

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    “Nigerians must understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC,” Dr. Agama said. “Platforms that make promises of extraordinary returns, especially those that depend heavily on referrals, often collapse, leaving thousands of people with painful losses.”

    The Commission reaffirmed its commitment to protecting investors and ensuring that only duly registered entities operate in the Nigerian capital market. It also encouraged Nigerians to report suspicious investment offers and platforms to the SEC for investigation.

    This latest warning comes amid a growing wave of online financial fraud schemes targeting Nigerians, particularly young investors drawn to the allure of quick profits through cryptocurrency and similar digital ventures.

    SEC restated that it would continue to monitor the activities of operators within the investment space and take appropriate regulatory action against any entities found to be engaging in unlawful activities.

  • SEC seeks stronger cooperation among African capital markets

    SEC seeks stronger cooperation among African capital markets

    The Securities and Exchange Commission (SEC) has called for deeper cooperation among African capital markets to strengthen integration across the continent and promote the development of new financial products.

    Director General of the SEC, Dr. Emomotimi Agama, made the call during a visit by the Board of the Commission to the Autorité Marocaine du Marché des Capitaux (AMMC), the Moroccan Capital Market Authority, in Rabat on Monday.

    Dr. Agama stressed the importance of African countries investing in each other’s markets to stimulate economic growth and create stronger linkages across the region. He said the time had come for African regulators and stakeholders to look inward, build robust collaborations, and work towards a common vision for the continent’s capital markets.

    “We need to cooperate in Africa, invest in each other’s markets and grow our continent. We want to build collaboration so that, as Africans, we can have a focus and build a strong interconnection. The time is now for us to look inwards,” Agama stated.

    He acknowledged Morocco’s expertise in Collective Investment Schemes (CIS), noting that Nigeria could learn valuable lessons from the Moroccan experience. With Nigeria’s large population, he said, there is significant potential to expand the reach and impact of CIS, enabling more citizens to benefit from regulated investment opportunities.

    “We are aware of your strength in Collective Investment Schemes, and we know we can learn a lot from you. The population of Nigeria is huge, and we need people to understand the huge benefits of CIS and how they can key into it,” he said.

    Agama described the capital market as the nerve centre of any economy and urged citizens to leverage investment opportunities to create wealth and improve living standards. He pointed out that the capital market serves as an enabler of economic development, and learning from Morocco’s experience would help bolster Nigeria’s market and create better outcomes for both countries.

    “We are excited about what the future holds for us and how we can forge a common front. Our relationship and integration will go a long way in building both markets and making life better for our citizens. We encourage governments to use long-term capital for long-term projects,” he added.

    According to him, the capital market offers solutions for financing infrastructure and other long-term development needs, and African regulators must work together to position the continent as a preferred investment destination.

    In her remarks, the Chairperson and CEO of the Moroccan Capital Market Authority, Ms. Nezha Hayat, expressed satisfaction with the growing ties between the two regulatory bodies. She said that Morocco’s capital market has evolved significantly, with mutual funds playing a central role in broadening investment access for the population.

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    “The capital market has now diversified so much, but for us, everything goes through mutual funds. We think CIS is very important because people put their money in funds that are regulated and controlled. People have more access through CIS. It is key to encourage the truth of any market,” she said.

    Ms. Hayat stated that the AMMC is keen on initiatives such as dual listings and the authorisation of funds in foreign currencies, which would allow Moroccan mutual funds to invest abroad. Nigeria, she added, is among the countries targeted for these developments as part of broader efforts to deepen continental integration.

    “We need to deploy initiatives that will focus on developing our continent,” she said.

    Also speaking during the visit, Chairman of the SEC Nigeria Board, Mr. Mairiga Katuka, said the Commission is committed to learning from other jurisdictions to strengthen the Nigerian capital market and improve its performance.

  • Report suspected illegal investment schemes to us, SEC charges Nigerians

    Report suspected illegal investment schemes to us, SEC charges Nigerians

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has urged Nigerians to report any suspected illegal investments scheme to the commission for proper investigation and necessary action.

    SEC at the weekend cautioned that phony investment schemes, otherwise known as Ponzi, posed great danger to the growth of the capital market.

    The Commission warned the public about the growing threats and risks posed by Ponzi schemes, illegal investment operations, and unregistered digital assets platforms.

    According to SEC, fraudulent entities and individuals have continued to exploit unsuspecting investors through deceptive promises of high returns, often leveraging the allure of digital assets to create an erroneous perception of legitimacy.

     “The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk.

     “These include unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes, without subjecting themselves to the prescribed processes for obtaining the prior approval of the SEC.

    “The SEC reiterates in this regard that ‘If it sounds too good to be true, it likely is,” Sec stated.

    The commission urged potential investors to conduct thorough due diligence before investing, urging them to verify the registration status of the company or individual offering the investment through the SEC’s website.

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    SEC pointed out that Section 196 (3) of the Investments and Securities Act (ISA), 2025 criminalises the promotion and operation of prohibited and unregistered schemes.

    “This violation is punishable upon conviction by a fine of not less than N20 million or a prison term of 10 years or both,” SEC warned.

    The SEC said it is fully committed to identifying and prosecuting offenders to the full extent of the law.

    SEC said: “We encourage the public to partner with the SEC to safeguard the integrity of the investment environment in Nigeria by promptly reporting suspected illegal investment schemes to the SEC”.

  • SEC warns influencers, bloggers against promoting unregistered investment schemes

    SEC warns influencers, bloggers against promoting unregistered investment schemes

    The Securities and Exchange Commission (SEC) has issued a stern warning to celebrities, social media influencers, and bloggers over the promotion of unregistered and fraudulent investment schemes.

    The commission has also reminded the public that the recently signed Investments and Securities Act (ISA) 2025 prescribes stiff penalties for violations, including jail terms and heavy fines.

    In a statement issued on Sunday, the Commission disclosed that it is collaborating with law enforcement agencies such as the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other relevant government institutions to investigate and prosecute individuals and platforms involved in unlawful investment promotions.

    The Director General of the SEC, Dr. Emomotimi Agama, noted that the ISA 2025 contains specific provisions targeting promoters of fraudulent and unregistered investment schemes. 

    According to him, those who exploit their platforms to promote such ventures now face serious legal risks. 

    “The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment,” he said, urging them to desist immediately.

    The Commission, he explained, remains focused on its core responsibilities of investor protection and capital market development. 

    He advised Nigerians to exercise caution when approached with investment offers, particularly those promising unrealistically high returns. 

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    “People must be careful, ask questions, and consult professionals before investing their hard-earned money,” Dr. Agama stated.

    As part of measures to safeguard the market, the SEC has enhanced its internal surveillance capacity. 

    The DG disclosed that dedicated departments have been created to monitor market activities and carry out onsite inspections, enabling the Commission to swiftly identify and respond to suspicious operations. 

    “Once we hear anything, we do something,” he said, referring to the proactive strategy designed to prevent widespread investment frauds.

    Dr. Agama said these initiatives have become even more critical in the wake of the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion. 

    CBEX reportedly lured investors with promises to double their funds within a month and falsely claimed international affiliations. 

    The SEC, he assured, is determined to shut down such operations and bring their promoters to justice.

    The ISA 2025, described as a landmark legislation signed into law by President Bola Ahmed Tinubu, has empowered the Commission with new legal tools to tackle fraudulent schemes. For the first time, Ponzi schemes are clearly defined under Nigerian law, with promoters now liable to face a minimum fine of ₦20 million and imprisonment of at least 10 years.

    Beyond the fight against Ponzi schemes, the law also brings digital assets under the regulatory oversight of the SEC. Dr. Agama explained that this development mandates all Virtual Asset Service Providers and Digital Asset Exchanges to register with the Commission and operate within established guidelines. 

    This, he said, closes a long-standing legal gap that previously enabled scammers to exploit investors in the digital space without consequences.

    “The SEC is capable, has the capacity, has the knowhow, and of course will be able to deal with anyone caught in this mess,” Dr. Agama declared, reiterating the Commission’s readiness to act decisively against all fraudulent operators.

    Investor education remains central to the SEC’s broader reform agenda. To this end, the Commission has launched educational campaigns across multiple platforms, including podcasts and social media, while also integrating capital market education into school curricula nationwide. 

    “We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” he noted.

    The SEC is urging Nigerians to take personal responsibility by verifying all investment opportunities directly with the Commission before committing their funds. Dr. Agama warned, “Once it is too good to be true, it certainly is not true.”

    He reiterated that the Commission is working to democratize wealth creation by providing a transparent and secure capital market environment for all Nigerians. 

    “The capital market helps you to democratize wealth for everybody,” he said, adding that ISA 2025 marks a crucial milestone in protecting investors and ensuring the resilience of Nigeria’s financial market.

    As fraudulent investment promoters increasingly target the public through social media and digital channels, the SEC says its message is clear: the era of unchecked exploitation of Nigerian investors is over.

  • CBEX: How Nigerians can identify ponzi schemes – SEC

    CBEX: How Nigerians can identify ponzi schemes – SEC

    The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has urged Nigerians to exercise caution and steer clear of Ponzi schemes, warning that such investment platforms often lure victims with promises that are simply too good to be true.

    He said: “You can identify a Ponzi scheme when an entity makes offers that appear certainly untrue and are bogus.

    “The definition we have in the ISA (Investments and Securities Act, 2025) clearly tells you that when an investment firm makes any promise that is almost totally unattainable, you will know that that is clearly a Ponzi scheme.”

    The SEC raised the alarm after preliminary investigations uncovered that CBEX, a firm also operating under the names ST Technologies International Ltd, Smart Treasure, and Super Technology, had been using deceptive promotional tactics to mislead the public.

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    According to the SEC, CBEX had presented itself as a digital asset-trading platform, enticing Nigerians with the promise of unrealistically high and guaranteed returns within a short period.

    In an official statement, the SEC clarified: “The Commission hereby clarifies that neither CBEX nor its affiliates were granted registration by the Commission at any time to operate as a Digital Assets Exchange, solicit investments from the public or perform any other function within the Nigerian capital market.”

  • ISA will stimulate economic growth – SEC

    ISA will stimulate economic growth – SEC

    The Securities and Exchange Commission (SEC) says the Investments and Securities Act (ISA) 2025 will be a game changer in the nation’s capital market with the potential to stimulate economic growth.

    The Director-General of SEC, Dr Emomotimi Agama, said  this in a statement made available to the News Agency of Nigeria (NAN) on Thursday in Abuja.

    Agama said the new law would provide the commission with the opportunity to retain its signatory A status with the International Organisation of Securities Commission.

    Agama described the law as significant which would allow other countries to benchmark the Nigerian SEC and capital market with other jurisdictions to drive friendly investments and investors.

    He said the law would encourage the inclusion of the regulation of online forex for which a lot of citizens were involved in and the introduction of legislation that speaks to digital assets regulation.

    ”The commodities ecosystem is well featured in this law being able to provide regulation regarding the commodities ecosystem from the spot market onto the derivative market and the secondary market.

    ”We have also been able to remove by this law restrictions by states and local governments in their ability to raise capital and bring development to their states and of course municipal areas.

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    ”So, this for us is very important,” he said.

    Agama said the law would help to create a dynamic, inclusive and resilient capital market for the economy.

    He reiterated the commission’s commitment toward moving the capital market and the country’s economy forward.

    (NAN)

  • SEC goes tough on investor’s protection

    SEC goes tough on investor’s protection

    • Stiffer penalties for infractions, illegal operators

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) yesterday read the riot act to all operators and stakeholders as a more rigorous enforcement regime kicks off.

     SEC pledged to ensure that only individuals who meet rigorous ethical and professional standards are allowed to operate in Nigeria’s capital market.

    According to SEC, recent regulatory actions such as revocation of licenses, suspension of operators, and pursuit of unregistered firms were early indicators of the Commission’s broader strategy in 2025.

    Director-General, Securities and Exchange Commission (SEC), Dr Emomotimi Agama, said the more rigorous enforcement regime was aimed at safeguarding investors and strengthening market confidence.

    He issued a stern warning to market operators engaging in dubious or unethical practices, noting that such individuals will face serious consequences.

    “What you have seen in recent months is only a tip of the iceberg. We believe that a well-protected investor is an empowered investor, and we will use every tool at our disposal, within the bounds of Nigerian law, to prevent and penalise fraudulent activities in the capital market,” Agama said.

    He said Commission would intensify efforts to enforce the “fit and proper person’s test,” a benchmark that assesses whether an individual or firm meets the statutory and regulatory standards required to function in the market.

     “As a form of self-regulation, operators must understand that if you engage in unethical conduct, the SEC will act decisively. The essence of registering a securities market operator lies in the fit and proper person’s test. This test ensures compliance with the provisions of the Investments and Securities Act (ISA) 2007 and other relevant SEC regulations,” Agama said.

    He added that public companies must provide accurate and timely disclosures, which are essential in enabling investors to make informed decisions.

    He warned that any breach of disclosure requirements that contravene both SEC regulations and the ISA would attract regulatory action.

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    “There is no hiding place anymore for anyone with an intention to defraud investors in the Nigerian capital market,” Agama said.

    He explained that investor protection remains a cornerstone of the Commission’s mandate, as outlined in the ISA 2007, and that ensuring the safety of investments is integral to the market’s growth.

    He noted that the Commission, under the leadership entrusted to him by President Bola Ahmed Tinubu, is determined to enforce this responsibility diligently.

     “It is important to state that every investor in Nigeria is under the cover of the SEC, provided they operate within the Nigerian capital market. The year 2025 is one where we will not tolerate any activities that fall outside the provisions of the ISA 2007,” Agama said.

    He said he was eagerly anticipating for the Presidential assent to the newly passed Investment and Securities Bill, which is currently undergoing administrative procedures. According to him, the new legislation will further strengthen the SEC’s regulatory powers and intensify the clampdown on Ponzi schemes, with stiffer penalties designed to serve as a deterrent.

     “Once the new Act is signed into law, it will underscore our determination to provide a robust regulatory framework that shields investors from fraudulent schemes, especially Ponzi schemes, which have caused significant financial losses in the past,” Agama said.

    He also spoke on the importance of regulatory compliance and timely disclosure, describing them as non-negotiable duties for all market participants.

    He urged operators—both existing and prospective—to collaborate with the SEC to foster sustainable growth in the capital market.

  • SEC slashes time for companies to raise capital at 14 days

    SEC slashes time for companies to raise capital at 14 days

    The Securities and Exchange Commission (SEC) has reduced the time required for companies to secure approval to raise capital in the Nigerian capital market, cutting the process from over a year to just 14 days.

    This development aims to make the capital market more efficient and better positioned to support the growth and development of Nigeria’s economy.

    In a statement issued by the SEC, its Director General, Dr. Emomotimi Agama, disclosed the initiative over the weekend in Abuja. He said that the current management of the SEC has streamlined approval processes to enable companies access funding more swiftly.

    “Since we came on board, it is instructive to say that we have helped propel the economy. One of the things that has been a challenge before we came to the saddle was time to market. Issuers would come to the market and spend time before they got approval to raise capital.

     “The capital market is the life and blood of any economy, and of course, this is actually regulated by time. So one of the first things we tackled since we came was to reduce the time to market. Therefore, I can proudly say that we have reduced the time to market from over a year to fourteen days,” Agama said.

    The SEC DG noted the success of the banking sector’s recapitalisation exercise, where banks raised over N2.2 trillion from the capital market using the e-offering platform.

     He stated that the Commission’s efficiency mechanisms ensured that issuers did not face delays in their applications, allowing approvals to be granted within record time.

    “In addition, all of these transactions have been fully subscribed, and we have encouraged the use of technology. They used the e-offering platform, meaning you do not have to use paper anymore to apply in this market. We hope to get better by the day,” Agama explained.

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    He stressed the growing role of technology in modernizing the market, stating: “Technology is the in-thing. The ISA 2007 has provided for that, and we feel that to achieve the milestone we want in the market, we need to do better. We applied that in the bank recapitalization, and the success is massive and overwhelming. The NGX has an e-IPO system that has proven to be very effective.”

    The SEC DG pointed out that all offers submitted during the recent period were approved within the promised 14 days. He also observed that the use of technology has attracted more young people to the market, contributing to its vibrancy.

    “In this year, we will make more use of technology in the work that we do,” he stated.

    Agama reiterated the Commission’s commitment to enhancing the capital market’s role in driving economic growth and providing solutions for the Nigerian economy.

    “What is new for us this year is efficiency, dedication, and giving back to society by using the capital market as an engine of growth and a propeller of wealth for all Nigerians. We must give back by ensuring that Nigerians are properly served.

    “The SEC is committed to protecting investors and developing the market. We must do everything within our powers and the laws to provide that and ensure Nigerians are happy again in investing in the market and making wealth for Nigerians,” he added.

  • SEC to educate state governments on capital market opportunities

    SEC to educate state governments on capital market opportunities

    The Securities and Exchange Commission (SEC) has announced plans to educate state governments across Nigeria on the opportunities available in the capital market for wealth creation and economic development.

    SEC Director-General, Dr. Emomotimi Agama, made this known during a meeting with representatives from the World Bank Group and the International Finance Corporation (IFC) in Abuja over the weekend.

    Dr. Agama explained that SEC would engage with state governments to enhance their understanding of financial markets, investment strategies, and regulatory frameworks.

    “Imagine setting up factories that produce goods for export and earn foreign exchange. Many Nigerians would be employed, leading to wealth creation and economic growth,” he said.

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    He noted that many states have vast resources that remain untapped, not because of a lack of willingness, but due to a lack of knowledge. “That is why education is important. If they do not know, they cannot take advantage of the opportunities available in the capital market,” he added.

    As part of the initiative, SEC will start by engaging with the Executive Council of a northern state to introduce them to capital market opportunities.

    “We will develop guides, reports, and policy briefs to explain these opportunities in simple terms. We will also use case studies from states that have successfully raised capital through bonds or attracted investment via the capital market,” Agama stated.

    He reiterated that SEC is committed to changing the narrative by ensuring state governments understand how to manage their resources effectively and leverage the capital market for development.

    Speaking earlier, Mr. Tom Ceusters, Director of Treasury Market Operations at IFC, said the World Bank Group and IFC are on a two-week mission in Nigeria to engage with regulators and financial institutions. Their goal is to develop strategies that will support Nigeria’s financial sector.

  • SEC to regulate capital market with Blockchain technology

    SEC to regulate capital market with Blockchain technology

    The Securities and Exchange Commission (SEC) has said the adoption of blockchain technology will enhance efficiency and aid the regulation of Nigeria’s capital market.

    Director-General of the SEC, Dr. Emomotimi Agama, made this known during a meeting with a delegation from the Algorand Foundation at the Commission’s headquarters in Abuja.

    He noted blockchain’s potential to address key challenges in Africa, such as financial exclusion, lack of transparency, and inefficiencies in both public and private sectors.

    Blockchain is a decentralized system that allows multiple parties to verify and validate transactions independently. It is recognized for its ability to enhance trust and security.

    Dr. Agama noted that leveraging this digital ledger technology would enable the SEC to build a more transparent and efficient regulatory framework for the capital market.

    “We want to activate blockchain in our efficiency; we want to be able to use it to regulate our market. My dream is to have all of the information we need to do our work in a blockchain. We want to bring technology into our system for effectiveness, where we can work seamlessly, and everything that we do will be traceable,” Agama stated.

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    He further stated that the SEC is committed to international best practices by collaborating with global regulatory bodies such as the International Organization of Securities Commissions (IOSCO). This, he explained, ensures that Nigeria’s regulatory framework remains robust and adaptive while aligning with global standards to foster cross-border collaboration and investor confidence.

    To harness blockchain responsibly, the SEC has introduced programmes such as the Accelerated Regulatory Incubation Programme (ARIP) and the Regulatory Incubation (RI) Programme. These initiatives provide a controlled environment for firms in the digital asset space to test new models, products, and services while ensuring consumer protection. Agama noted that the recent approval-in-principle granted to two digital asset exchanges and five firms participating in these programmes shows the Commission’s commitment to supporting innovation.

    “In this era of technological innovation, the question is not whether Africa will adopt blockchain, but how it will shape its adoption to maximize its benefits for all the people,” he added.

    Agama stressed that blockchain’s immutable and tamper-proof structure ensures transparency in financial transactions and regulatory oversight. He disclosed plans to integrate blockchain into the SEC’s operations to improve accountability, stating, “Wherever there is a toxin in the blockchain, we will find it and deal with it. We will extend it to the point where the review of applications will be done on the blockchain, so whoever drops the ball will be seen.”

    As part of efforts to drive technological advancement, Agama said the SEC has engaged the Algorand Foundation to explore blockchain’s potential applications and benefits for the Commission. He stressed the importance of continuous education and skill development for SEC staff, noting that regulators must be well-equipped to oversee the evolving digital market.

    “It is very interesting that we are having this opportunity to do this for our organization. This is a knowledge-based institution, and I am leading from the front. All our staff must begin to retool themselves because as regulators, we have to be on top of our game,” he said.

    Speaking at the meeting, Global Head of Business Development at the Algorand Foundation, Mr. Eric Wragge, reiterated the foundation’s commitment to democratizing blockchain technology and supporting organizations in leveraging its benefits.

    “We are here to tell you what blockchain is all about and how it can help your work. We are here to democratize the technology—it’s free to use, anybody can use it. Our job is to go around the world, discover where the technology can be used, and help people implement it,” Wragge stated.