The Securities and Exchange Commission (SEC) has issued a stern warning to Nigerians and small business owners to exercise caution when engaging with online investment platforms, highlighting the importance of verifying regulatory registration before committing funds.
The capital market regulator raised concerns following complaints about certain online platforms claiming to operate under SEC supervision while offering investment services in Nigerian stocks, bonds, and other financial instruments. According to the Commission, such claims are often false and misleading and could expose investors, including small business owners relying on personal savings, to significant financial loss.
“The attention of the Securities and Exchange Commission, Nigeria, has been drawn to the activities of certain online investment platforms that claim to operate under our supervision,” the Commission stated. “Investors are hereby informed that any entity not registered or licensed by the SEC is operating outside regulatory oversight, leaving participants at risk of losing their funds with limited avenues for recourse.”
SEC officials noted that some platforms go as far as displaying purported certificates of identity verification, giving the impression of legitimacy. “These representations are deceptive and can mislead unsuspecting investors,” the regulator added.
The warning aligns with previous SEC advisories issued in 2025, including alerts against cryptocurrency and commodities trading platforms that exhibited features of fraudulent or unlicensed investment schemes. The Commission continues to emphasize that verification of registration is critical before engaging any investment platform.
Small business owners, entrepreneurs, and individual investors are particularly vulnerable, as many may seek to grow their capital or access working funds through online platforms. SEC recommends that all prospective investors use its official verification portal to confirm the registration status of any company offering investment opportunities.
Financial analyst Adewale Adeoye noted, “For MSMEs and startups, even a small financial loss can disrupt operations. Ensuring that funds are invested in registered and regulated entities is essential to protecting both personal and business finances.”
The SEC’s ongoing message is clear: Nigerians should prioritize safety, verify registration, and remain vigilant to avoid falling victim to unregulated investment schemes. The regulator reiterated its commitment to safeguarding investors, promoting transparency, and supporting a secure environment for capital growth and economic development.
