The Securities and Exchange Commission (SEC) has disclosed that Nigerians have lost an estimated ₦316 billion to Ponzi schemes and illegal fund managers over the years.
Speaking at a journalists’ academy in Abuja, AbdulRasheed Dan-Abu, Head of SEC’s FinTech and Innovation Department, explained that Ponzi schemes operate by paying old investors using funds from new entrants, without any legitimate business activity.
He cited several notorious schemes, including MMM Nigeria, which wiped out ₦18 billion in investor funds, and others like New Nation, Women in Oil, which deceived 155,000 rural women. Additional losses included ₦100 million each in Cow Lane and Durrell Nigeria Ltd, ₦235 million in Now-Now Alert, ₦400 million each in G-Circle Investment and Box Value Trading, ₦900 million in Yuan Dong, ₦2.5 billion in Famzi Intbiz, ₦3.5 billion in Bara Finance, ₦7 billion in Galaxy Construction and Transportation, and ₦106.9 billion in Nospecto Oil and Gas. A single case still under investigation is estimated at over ₦174 billion.
Dan-Abu warned that many operators use aggressive marketing on social media, forming WhatsApp groups and luring victims with promises of high returns and minimal risk. He urged investors to verify any investment opportunity with the SEC before committing funds.
He also called on journalists to support awareness campaigns, noting that consistent reporting could help protect potential victims and strengthen public understanding.
SEC Director-General Dr. Emomotimi Agama, represented by Efe Ebelo, emphasized the importance of regulating digital assets. He said Nigeria ranks among the top global adopters of crypto, but rapid growth has also created opportunities for scams and fraud.
Agama reaffirmed the SEC’s commitment to transparency, licensing, and anti-money laundering compliance. He said the Commission is working with the Central Bank of Nigeria and the EFCC to freeze illicit wallets and recover stolen funds using blockchain analytics.
The Commission concluded that the future of finance must be built on trust, transparency, and ethical practices.
