The Economic and Financial Crimes Commission (EFCC) and the Chartered Institute of Stockbrokers (CIS) have warned Nigerians to remain vigilant against fraudulent investment schemes, urging caution against excessive greed for money.
The EFCC, in a post on its X handle on Sunday, cautioned, “Love money too much, and Ponzi schemes will love you as their next target; be guided. The Eagle loves you all.” The advice comes amid ongoing investigations into the collapsed CBEX digital investment platform, which allegedly wiped out over N1.3 trillion in investors’ funds.
At the CIS 30th Annual General Meeting (AGM) held in Lagos, President and Chairman of Council, Oluropo Dada, emphasized that any investment platform not registered with the Securities and Exchange Commission (SEC) should be treated as a Ponzi scheme.
“Any unregistered investment scheme is Ponzi,” Dada warned. “They often disguise themselves as legitimate platforms but are ultimately engineered to swindle hardworking Nigerians.”
Dada urged investors to verify the SEC registration status of any investment platform before committing funds, stressing that promises of fast, guaranteed returns are classic red flags for scams.
His remarks coincided with the SEC’s renewed crackdown on unlicensed investment operators following the CBEX collapse. The EFCC, meanwhile, declared eight individuals wanted over their alleged involvement with CBEX.
Justice Emeka Nwite of the Federal High Court in Abuja granted the EFCC’s request to arrest and detain those promoting the scheme pending the completion of investigations and possible prosecution.
The commission further revealed that while ST Technologies, linked to the CBEX platform, is registered with the Corporate Affairs Commission (CAC), it lacks SEC authorization to operate investment activities.
Beyond warning investors, Dada also reviewed CIS’s initiatives to reposition the securities profession. He highlighted the success of the “Catch Them Young” campaign, aimed at attracting youth to the capital market through partnerships with tertiary institutions. Plans are underway to introduce degree and postgraduate linkage programs in Securities and Investment Studies to broaden access to the profession, even for those without finance backgrounds.
