That was the strong warning from Dr Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC), as Nigeria battles a surge in Ponzi schemes disguised as legal businesses.
“Being registered by CAC doesn’t mean you’re licensed to invest or manage funds,” Dr. Agama said.
The Common Mistake: Confusing CAC With SEC
Many Nigerians fall for scams because companies display a CAC certificate as proof of legitimacy. But Dr Agama stressed, “The CAC registers businesses. Only the SEC licenses those handling public investments.”
Why This Distinction Matters
- CAC: Registers businesses for general purposes.
- SEC: Regulates and licenses companies handling investments, funds, or promising returns.
Without SEC licensing, no firm is legally allowed to collect public money or offer investment returns.
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Case in Point: The MBA Forex Scam
Dr Agama referenced MBA Forex, which stole ₦179 billion from over 88,000 Nigerians. Though it had CAC registration, the SEC had rejected it due to red flags. Many still trusted the firm, believing it was government-approved, until it crashed.
“People saw the CAC certificate and assumed it meant government approval. It didn’t,” he said.
Before You Invest: What You Must Do
- Don’t rely on CAC registration – it only proves the company exists, not that it’s licensed to handle funds.
- Verify with SEC – Visit www.sec.gov.ng or contact SEC to confirm the company’s investment licence.
- Know the law – Only the SEC can authorise platforms offering financial returns, including crypto, cooperatives, and digital wealth schemes.
Quick Guide: CAC vs. SEC
| Feature | CAC | SEC |
|---|---|---|
| Registers companies |  Yes |
 No |
| Licenses investment firms | No |
Yes |
| Can collect public funds? | No |
Yes (if licensed) |
| Protects investors | No |
Yes |
| Can sanction fraudsters | No |
Yes |
Final Warning
“Don’t confuse registration with regulation,” Dr Agama said. “Only the SEC can license anyone to touch your money. Always check.”
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.
