Students, Youth Investors Lost N316bn to Ponzi Schemes in Nigeria – SEC

The Securities and Exchange Commission (SEC) has revealed that Nigerian students, young professionals, and retail investors have collectively lost about ₦316 billion to Ponzi schemes and illegal fund managers in recent years, warning that greed and ignorance continue to fuel the scourge.

This was disclosed by AbdulRasheed Dan-Abu, Head of the FinTech and Innovation Department at the SEC, during a presentation on combating investment fraud at the Commission’s Journalists’ Academy in Abuja.

Dan-Abu explained that most of the so-called investment platforms were fraudulent operations that paid old investors with funds from new entrants rather than genuine profits from productive ventures.

“These schemes are not really doing anything. They just collect people’s money and use it to pay earlier investors. Once there are no new participants, the system collapses and the operators vanish,” he said.

He described the growing desire for instant wealth as the main reason many Nigerians — especially youths — fall victim.

“Everybody just wants to get rich today. That is what pushes people into these traps. Even educated people now fall for Ponzi schemes. Education has not stopped greed,” he noted.

Dan-Abu recalled how fraudulent networks like MMM Nigeria lured thousands with promises of 30 percent monthly returns, and how many victims reinvested even after its collapse. He also cited New Nation (Women in Oil), which disguised as a government-backed empowerment scheme and trapped 155,000 rural women — many of whom sold their homes and cars to participate.

According to SEC’s records, Nigerians lost staggering sums to multiple illegal operators, including ₦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, and ₦900 million in Yuan Dong.

Other major cases include Dantata Success and Prof Coy (₦1.2bn–₦2bn), Famzi Intbiz (₦2.5bn), Bara Finance (₦3.5bn), Galaxy Construction and Transportation (₦7bn), and MMM Nigeria, which wiped out ₦18bn.

Meanwhile, Nospecto Oil and Gas and other “wonder banks” cost investors about ₦106.9bn, while the single largest case under SEC investigation exceeds ₦174bn.

A detailed analysis of SEC’s data places total investor losses between ₦315.24bn and ₦316.04bn.
Dan-Abu said most operators now exploit social media for recruitment, using WhatsApp groups and flashy marketing to attract unsuspecting investors with promises of unrealistic returns.

“They promise high returns with little or no risk. But there’s no business in the world where you can make quick money without risk. It’s not possible,” he cautioned.

He advised investors to always confirm whether a firm or platform is registered with the SEC before committing funds.

“If it’s not registered, it’s already illegal. It’s your sweat, your hard-earned money — don’t hand it over blindly,” he warned.
He also called on the media to play a stronger role in public enlightenment, saying consistent reporting could save thousands from falling victim.

“If you write about this once a week, you could save many people. Tomorrow, it might be your son, your cousin, or your neighbour,” he said.

In his remarks, Dr. Emomotimi Agama, the SEC’s Director-General, stressed that Nigeria must strengthen regulation of digital assets to protect investors and sustain trust in the financial system.

Represented by Efe Ebelo, the SEC’s Head of External Relations, Agama said digital assets are now a key part of modern finance and must be properly supervised.

“Regulation is not about restriction; it is about building trust and ensuring that innovation serves progress, not predation,” he stated.

He revealed that the Commission is working closely with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to track illicit wallets, freeze criminal proceeds, and deploy blockchain analytics to trace suspicious transactions.

“Worldwide, regulators face the same paradox — clamp down too hard and innovation migrates offshore; regulate too softly and risks multiply. Our duty is to strike the right balance,” Agama said.

He reaffirmed SEC’s commitment to promoting ethical and transparent investment practices.
“In this new frontier of finance, trust is the ultimate currency — and our highest duty as regulators is to preserve it,” he added.