The Securities and Exchange Commission (SEC) has revealed that Nigerians have lost about ₦316 billion to Ponzi schemes and fake investment companies over the years.
The Head of FinTech and Innovation at the SEC, AbdulRasheed Dan-Abu, made this known in Abuja during a training session for finance journalists.
He explained that Ponzi schemes work by using money from new investors to pay earlier ones instead of earning profits from real business activities.
“These schemes don’t run any real business. They only collect people’s money to pay others. Once new investors stop joining, everything collapses, and the operators vanish,” he said.
Dan-Abu blamed greed and the desire for quick wealth for the growing problem. He noted that even educated people fall for these scams.
He gave examples of well-known scams such as MMM Nigeria, which promised 30% monthly returns. Even after it collapsed, some victims still paid money hoping to recover their lost funds.
He also mentioned a fake group called New Nation, Women in Oil, which claimed to be a government programme and trapped over 155,000 rural women, many of whom sold their houses and cars to invest.
Other major Ponzi schemes listed by the
SEC included:
Cow Lane and Durrell Nigeria Ltd – ₦100 million each
Now-Now Alert – ₦235 million
G-Circle Investment and Box Value Trading – ₦400 million each
Yuan Dong – ₦900 million
Dantata Success and Prof Coy – between ₦1.2 and ₦2 billion
Famzi Intbiz – ₦2.5 billion
Bara Finance – ₦3.5 billion
Galaxy Construction and Transportation – ₦7 billion
MMM Nigeria – ₦18 billion
Nospecto Oil and Gas and other “wonder banks” – ₦106.9 billion
One ongoing case – over ₦174 billion
Altogether, the losses total between ₦315 billion and ₦316 billion, according to analysis done based on SEC data.
However, the list did not include Crypto Bridge Exchange (CBEX), which reportedly defrauded Nigerians of over ₦1.3 trillion.
Dan-Abu explained that most scammers use social media platforms to lure victims through fake WhatsApp groups and promises of high returns.
He advised Nigerians to always confirm if an investment company is registered with the SEC before putting in money.
“It’s your hard-earned money. If the company is not registered, it’s illegal,” he warned.
He also urged journalists to help raise awareness, saying that regular reporting could save many from falling victim.
The SEC Director-General, Dr. Emomotimi Agama, said Nigeria must strengthen regulations for digital assets to protect investors and maintain public trust.
Represented by the Head of External Relations, Efe Ebelo, Agama said digital assets are now a major part of modern finance and must be properly regulated.
“Regulation isn’t about restriction; it’s about building trust and protecting investors,” he said.
Agama added that Nigeria ranks among the top countries using digital assets, but the growth has also led to scams and cyber fraud.
He said the SEC’s 2022 digital asset rules provide a clear framework for virtual asset service providers, focusing on licensing, transparency, and anti–money laundering compliance.
The SEC is working with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to trace illegal funds and freeze suspicious digital wallets.
Agama concluded that while the future of finance is digital, trust and transparency must remain at its core.
“In this new financial world, trust is the most important currency,” he said.