SEC says Nigerians have lost ₦316bn to Ponzi schemes, warning that greed, ignorance, and poor due diligence fuel rising investment fraud

The Securities and Exchange Commission (SEC) has revealed that Nigerians have lost an estimated ₦316 billion to Ponzi schemes and illegal fund managers over the years, warning that greed and ignorance remain the key drivers of the menace.

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The Head of FinTech and Innovation Department at the Commission, AbdulRasheed Dan-Abu, disclosed this during the SEC Journalists’ Academy held in Abuja while presenting a paper on combating investment fraud.

Dan-Abu described Ponzi schemes as fraudulent investment operations that pay returns to old investors from funds collected from new entrants, without any genuine business backing.

“These schemes are not really doing anything. They are just collecting people’s money and using it to pay the initial investors. At some point, when there are no new investors, the whole thing crashes and the operators disappear,” he said.

According to him, the desire for instant wealth has pushed many Nigerians into fraudulent ventures.

“Everybody just wants to get rich today. That is what makes people fall into this trap. Even educated people fall for it. Education has not stopped greed,” he added.

Dan-Abu recalled the collapse of notorious schemes like MMM Nigeria, which wiped out ₦18 billion, and New Nation Women in Oil, which trapped 155,000 rural women who believed they were investing in a government-backed empowerment programme.

Other fraudulent platforms cited include Cow Lane, Durrell Nigeria Ltd, G-Circle Investment, Box Value Trading, Famzi Intbiz, Bara Finance, and Galaxy Construction and Transportation, which collectively accounted for billions in losses.

Despite the staggering numbers, the SEC noted that the list excluded Crypto Bridge Exchange (CBEX) — a recent digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion.

Dan-Abu warned that many operators now exploit social media and messaging apps to lure unsuspecting investors with promises of “risk-free” high returns.

“There is no business in the world where you can make a lot of money quickly without risk. Anytime you see such, check with the SEC first,” he advised.

He urged journalists to join in raising awareness against fraudulent schemes, noting that “one report a week could save thousands from losing their savings.”

In his remarks, the Director-General of SEC, Dr. Emomotimi Agama, emphasised that digital assets had become a major part of modern finance and required robust regulation to protect investors.

Represented by Efe Ebelo, the SEC’s Head of External Relations, Agama said:

“Regulation is not about restriction; it is about building trust, ensuring that innovation serves progress and not predation.”

He added that the Commission was collaborating with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to track and freeze illicit wallets, using blockchain analytics tools to trace suspicious transactions.

Agama stressed that while Nigeria ranks among the world’s top crypto adopters, regulators must strike a balance between innovation and investor protection.

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“The future of finance is digital, but it must remain ethical, transparent, and trustworthy,” he concluded.