The Securities and Exchange Commission (SEC) has sounded a strong warning to Nigerians, urging them to steer clear of Value Growth Platform, an online investment outfit the regulator suspects is running a Ponzi scheme.
In an official statement released on Friday, the SEC revealed that Value Growth Platform has been promoting itself as a sophisticated investment service, offering market analysis, investment tips, and third-party trading opportunities. However, after a thorough investigation, the Commission found these claims to be both misleading and illegal.
According to the SEC, Value Growth Platform displays several classic warning signs of a fraudulent scheme. These include promises of guaranteed high returns, aggressive referral programs that reward users for bringing in new investors, and urgent requests for people to fund their accounts quickly.
“The Commission hereby informs the public that Value Growth Platform is not registered by the Commission to either solicit investment from the public or operate in any capacity within the Nigerian capital market,” the SEC stated. “Accordingly, the public is advised to be cautious about investing with the said Value Growth Platform, as any person who engages with the entity or its representative does so at his/her own risk.”
This warning comes as part of a broader effort by the SEC to protect Nigerians from scams in the rapidly evolving financial technology space. In recent weeks, the Commission has also flagged other unregistered investment outfits, including CMTrading, Zugacoin, and Samzuga GPT, cautioning that these entities are not licensed to operate or seek public investments in Nigeria.
The SEC particularly highlighted the dangers of so-called “meme coins” and derivative tokens like SZCB and SZCB2, which are often promoted through hype but lack any real value or utility. The regulator warned that such digital assets are highly volatile and can be used to exploit unsuspecting investors.
The SEC is urging all Nigerians to verify the registration status of any investment platform through official channels before committing their money. Under Nigeria’s newly updated Investments and Securities Act 2025, operating a Ponzi scheme now carries a minimum penalty of 10 years in prison and a fine of at least ₦20 million.
As financial scams become more sophisticated, the SEC’s message is clear: always do your due diligence, and remember that if an investment opportunity sounds too good to be true, it probably is.
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