The Securities and Exchange Commission (SEC) has revealed that Nigerians have lost an estimated ₦316 billion to Ponzi schemes and unlicensed fund managers over the years.
The Commission blamed greed, ignorance, and poor financial literacy for the persistence of such fraudulent activities.
The Head of FinTech and Innovation at SEC, AbdulRasheed Dan-Abu, disclosed the figures during a journalists’ academy held in Abuja, where he presented a paper on tackling investment fraud.
He described Ponzi schemes as deceptive operations that pay older investors from the deposits of new participants, rather than through legitimate business activities.
“These schemes don’t engage in any real business,” Dan-Abu explained. “They collect money from people and use it to pay earlier investors. Eventually, when there are no new investors, everything collapses and the operators vanish.”
He noted that the relentless pursuit of quick wealth continues to make Nigerians vulnerable to scams.
“Even educated people fall for them. Education doesn’t eliminate greed,” he said, recalling how the infamous MMM Nigeria scheme enticed thousands with promises of 30% monthly returns.
Dan-Abu also cited the “New Nation, Women in Oil” fraud, which posed as a government-backed empowerment programme and deceived over 155,000 rural women, many of whom sold their properties to invest.
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SEC’s presentation listed several major losses, including ₦100 million each in Cow Lane and Durrell Nigeria Ltd, ₦235 million in Now-Now Alert, ₦400 million in G-Circle Investment and Box Value Trading, ₦900 million in Yuan Dong, and up to ₦3.5 billion in Bara Finance.
The notorious MMM Nigeria alone wiped away about ₦18 billion, while Nospecto Oil and Gas and other “wonder banks” accounted for nearly ₦107 billion.
The single largest case under investigation, according to SEC, exceeds ₦174 billion.
However, the report did not include Crypto Bridge Exchange (CBEX), a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion.
Dan-Abu warned that many fraudsters now use social media and WhatsApp groups to lure investors with “unrealistic” promises.
“No genuine business offers huge profits with zero risk. It’s simply impossible,” he said.
He advised Nigerians to verify any investment platform with the SEC before committing funds. “If it’s not registered, it’s already illegal. Protect your hard-earned money,” he urged.
Dan-Abu also appealed to journalists to join the fight against Ponzi schemes through consistent public awareness. “If the media writes about this weekly, we could save thousands of people,” he said.
Speaking at the same event, SEC Director-General Dr. Emomotimi Agama, represented by the Head of External Relations, Efe Ebelo, stressed the importance of regulating Nigeria’s growing digital asset market.
He described digital finance as “a structural pillar of modern finance” that requires the same transparency and investor protection as traditional markets.
“Regulation isn’t about restriction — it’s about trust,” Agama stated. “We must ensure innovation serves progress, not exploitation.”
He noted that Nigeria ranks among the world’s top adopters of digital assets, with more than a third of its population involved in crypto-related activities. However, he warned that this rapid growth has also enabled scams, phishing, and fake investment platforms.
Agama reaffirmed that the SEC is working with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to trace suspicious transactions, freeze illicit wallets, and recover stolen funds.
“The future of finance is digital,” he concluded, “but it must also be ethical, transparent, and trustworthy — because trust remains the ultimate currency.”
