The Securities and Exchange Commission (SEC) has revealed that Nigerians have lost approximately ₦316 billion to Ponzi schemes and unregistered fund managers over the years, blaming greed and ignorance as the main drivers of the problem.
The Head of FinTech and Innovation at the SEC, AbdulRasheed Dan-Abu, disclosed this during a presentation on combating investment fraud at a journalist training programme in Abuja.
Dan-Abu described Ponzi schemes as fraudulent operations that pay returns to earlier investors using funds from new entrants rather than profits from real business activities.
“These schemes are not engaged in any genuine business. They simply collect people’s money to pay initial investors. When new investors stop coming in, everything collapses, and the operators disappear,” he said.
He noted that the widespread desire for quick wealth continues to lure many Nigerians into such traps.
“Everyone wants to get rich today. That mindset drives people into these scams. Even the educated are not exempt — education has not stopped greed,” he added.
Dan-Abu recalled infamous scams like MMM Nigeria, which promised 30 percent monthly returns and lured thousands of investors. Even after its collapse, many victims reinvested when new scams resurfaced under different names.
He also mentioned New Nation, Women in Oil, a fraudulent empowerment programme that deceived over 155,000 rural women, many of whom sold properties to invest.
A breakdown of SEC data revealed huge losses across various schemes — from ₦100 million in Cow Lane and Durrell Nigeria Ltd, to ₦18 billion in MMM Nigeria, and over ₦174 billion in a case still under investigation. In total, investor losses were estimated at between ₦315.24 billion and ₦316.04 billion.
However, the figures did not include Crypto Bridge Exchange (CBEX), a digital investment platform that reportedly defrauded Nigerians of over ₦1.3 trillion.
Dan-Abu warned that modern Ponzi operators now use social media and WhatsApp groups to attract unsuspecting investors with unrealistic promises of high returns.
“There’s no business where you can make huge profits in a short time without risk. It’s not possible,” he cautioned.
He urged the public to verify any investment with the SEC before committing funds.
“If it’s not registered with the SEC, it’s already illegal. Always confirm before parting with your hard-earned money,” he advised.
Dan-Abu also appealed to journalists to help spread awareness, stressing that consistent reporting could save thousands from falling victim.
In his remarks, SEC Director-General Dr. Emomotimi Agama emphasized the need for stronger regulation of digital assets to protect investors and maintain trust in Nigeria’s financial system.
Represented by the Head of External Relations, Efe Ebelo, Agama said digital assets are now a core part of modern finance and must be guided by transparency and accountability.
“Regulation is not about restriction; it’s about building trust and ensuring innovation serves progress, not predation,” he stated.
Agama revealed that the SEC is working with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to freeze illicit wallets and recover stolen funds. He added that the Commission is also deploying blockchain analytics tools to track suspicious transactions.
He concluded that the future of finance is digital, but it must remain ethical, transparent, and trustworthy.
“In this new frontier of finance, trust is the ultimate currency — and our duty as regulators is to preserve it,” Agama said.
