The Securities and Exchange Commission (SEC) has declared the rising wave of Ponzi schemes in Nigeria a national emergency, warning that the proliferation of unregulated investment platforms is not only wiping out life savings but threatening the country’s economic and social stability.
“Ponzi schemes have become a dangerous epidemic,” says Dr Emomotimi Agama, Director-General of the SEC, in a recent interview with newsmen.
“We are no longer talking about isolated cases. This is a systemic crisis that touches families, churches, markets, and even civil servants. It’s a silent war on Nigerians.”
Ponzi Is Now a Shadow Economy — SEC
According to the SEC, Ponzi schemes in Nigeria have grown into a multi-billion-naira shadow economy, exploiting weak regulation, digital anonymity, and social trust to expand rapidly across states.
From WhatsApp trading groups to fake fintech apps, from cryptocurrency fronts to old-school cooperatives, these schemes now reach millions of Nigerians — particularly low- and middle-income earners hoping for quick returns in an unstable economy.
“It’s become sophisticated,” Dr Agama explains, “They brand like banks. They code like tech startups. They even use lawyers and influencers to appear legitimate. But at the core, it’s still fraud — organised and ruthless.”
Most Dangerous Element? Trust.
Dr Agama says the most dangerous ingredient in Nigeria’s Ponzi epidemic is not the technology or returns; it’s misplaced trust.
“Most victims are recruited by friends, family members, and even church groups,” he notes.
“People are losing ₦50,000, ₦500,000, and ₦5 million, and they are too ashamed to talk. Silence is killing more dreams than the scams themselves.”
The MBA Forex Fallout Still Haunts SEC
One of the most catastrophic cases remains the MBA Forex scandal, in which over ₦179 billion was allegedly lost by more than 88,000 Nigerians, many of them public servants and retirees. The scheme operated under the guise of forex trading, complete with offices, marketing materials, and high-profile endorsements, until it collapsed in 2021.
“We’ve seen entire families wiped out,” Dr Agama said. “The emotional trauma is real, and most of these people have never recovered their money.”
A New SEC, A New War
Dr Agama, who took office earlier this year, says the SEC is now reborn and rearmed to protect Nigerian investors.
“We are not here to play politics. We are here to protect people’s futures,” he asserts. “The Nigerian capital market must be a place of trust, not traps.”
He also warned social media influencers, celebrities, and radio hosts who promote unregistered schemes: “If you help a fraudster steal from Nigerians, we will find you. We will prosecute you. We will make you a lesson.”
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Further Warning to the Public
Dr Agama urged Nigerians to always verify investment opportunities through the SEC portal or directly with the Commission before committing their funds.
“If it sounds too good to be true, it probably is. If you can’t trace the registration, don’t touch it. If your so-called investment manager doesn’t have an SEC licence—run,” he warned.
He also encouraged victims to speak out, report their cases, and not allow shame to keep them silent.
“The fight against Ponzi schemes is not just regulatory; it’s emotional, spiritual, and psychological. But the SEC is ready—we’re going after them all.”
Ponzi schemes are a national emergency—a war on trust—warns SEC DG Agama, who says silence is deadlier than the scams themselves and vows that anyone promoting fraud will be found, as no one is above the law.
SEC urged the public to be wary of schemes that promise guaranteed returns, lack SEC registration, pressure you to recruit others, operate without a clear business model, or rely heavily on endorsements from influencers
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
