The Securities and Exchange Commission (SEC) has issued a strong warning to celebrities, social media influencers, and bloggers: promoting unregistered or fraudulent investment schemes, including notorious platforms like CBEX, now carries severe legal consequences, including up to 10 years in prison and fines of at least ₦20 million under the new Investments and Securities Act (ISA) 2025.
The warning comes in the wake of the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion. CBEX lured investors with promises to double their funds within a month and incentivised referrals, classic hallmarks of a Ponzi scheme. The platform’s sudden inability to process withdrawals sparked panic, protests, and widespread outrage across the country.
Dr. Emomotimi Agama, Director General of the SEC, emphasised that the new law specifically targets individuals who use their platforms to promote unregistered or fraudulent investment schemes. “We are, therefore, using this medium to caution individuals against promoting unregistered entities,” Agama stated, adding that the SEC is working with the EFCC, Nigerian Police, and other agencies to investigate and prosecute violators.
Agama warned that “becoming influencers or introducing meme coins that do not benefit the Nigerian public will not be tolerated. We now have the legal teeth to bite,” referring to the SEC’s expanded prosecutorial powers under ISA 2025.
New Law Closes Digital Asset Loopholes
For the first time, Nigerian law now recognises virtual assets as securities, bringing digital asset platforms and exchanges under SEC regulation. All such platforms must register with the Commission and comply with transparency and anti-fraud guidelines. CBEX, for example, was not registered with the SEC, making its operations illegal under the new regime.
Protecting Investors and the Market
The SEC has ramped up its surveillance and enforcement efforts, creating specialised departments to monitor market activities and swiftly respond to suspicious operations. Agama reaffirmed the Commission’s commitment to investor protection and market development, urging Nigerians to verify investment opportunities via the SEC’s official registry before investing.
“If an offer sounds too good to be true, it likely is,” Agama cautioned, advising the public to consult professionals and avoid schemes promising unrealistic returns.
The new ISA 2025 aims to restore investor confidence, strengthen market integrity, and ensure that Nigeria’s growing digital finance sector remains safe for all.
Promoting unregistered investment schemes now carries a minimum ₦20 million fine and 10-year jail term.
CBEX, which promised 100% monthly returns, is unregistered and considered illegal by the SEC.
Influencers, celebrities, and bloggers are urged to verify all investment promotions and avoid endorsing dubious schemes.
Nigerians are advised to always check the SEC’s registry before investing and report suspicious platforms for prompt action.
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