Securities and Exchange Commission (SEC) has warned that unregistered schemes pose serious risks for investors.

This is coming after the commission announced that it has shut down more than 400 fraudulent investment schemes across Nigeria, in intensified regulatory crackdown on illegal investment activities and a stronger push to protect investors.

SEC also said that several suspects linked to these schemes are currently under prosecution.

The disclosure was made by Bola Ajomale, executive commissioner for Operations, SEC, during the financial literacy forum “The Money Fair,” organized by Nairametrics in Lagos.

Ajomale, who represented Dr. Emomotimi Agama, director-general, SEC, emphasized the regulator’s commitment to safeguarding market confidence amid a surge in unregulated investment platforms.

“Over the last three years, we have investigated and shut down at least 400 of these so-called schemes,” Ajomale said.

“We saw a tremendous increase in them last year, and a number of those involved have been arrested and prosecuted.”

If the investment product or the operator is not registered with the SEC, they have no business asking you to put your money there.”

The SEC has intensified its enforcement measures alongside public awareness campaigns to curb the proliferation of illegal investment platforms.

Initiatives such as the “See It, Snap It” campaign and the “SEC Scam Alert” platform have been introduced to enable Nigerians to report suspicious schemes quickly, allowing regulators to act before these operations expand.

Ajomale noted that the regulator has adopted a multi-pronged strategy combining investigations, arrests, and investor education to enhance market integrity.

“We are not just shutting down illegal schemes; we are also empowering investors with the knowledge to identify and avoid fraudulent operators,” he said.

The crackdown comes as unregulated investment products continue to pose significant risks to Nigerian investors, particularly amid rising interest in digital and alternative investment platforms.

By Matthew Anthony, Senior Market Analyst- Africa

Tensions in the Middle East are sending shockwaves through global markets, stoking fresh inflation concerns as oil prices climb.

As these tensions escalate, mounting fears of inflationary shocks could force central banks to rethink their 2026 playbooks.

Against this backdrop, Nigeria’s inflation eased to 15.06% in February, just before the Iran conflict erupted. Since then, gasoline prices have soared by more than 30% for Africa’s leading crude exporter, pushing transportation costs higher for everyday Nigerians.

Nigeria’s oil production has helped shield it from the war’s fallout. The currency has only dipped 0.3% against the dollar in the past two weeks.

However, these shifts may challenge the CBN’s plans to keep lowering interest rates. The Naira now trades at NGN1,385 per US dollar, up from NGN1,360 before tensions flared in the Middle East.

Outside of Nigeria, risk aversion returned to global markets on Tuesday as tensions in the Middle East sapped risk appetite.

The brief tech rally in the previous session merely served as a small distraction with equities on the back foot amid the overall caution.

All eyes remain on the ship traffic through the Strait of Hormuz as Trump calls for other nations to secure the critical waterway.

Ultimately, this has injected oil prices with monstrous levels of volatility with Brent rallying above $103 a barrel on Tuesday.  Iran’s attacks on energy infrastructure around the Middle East have intensified fears around supply shocks, injecting oil bulls with renewed vigour.

To counter such shocks, the IEA launched its largest ever oil release amounting to 400million barrels of oil from their emergency stocks. In addition, the US issued its second temporary waiver for the purchase of Russian oil. Despite all of this, Brent is finding comfort at triple digits and could extend gains on geopolitical risk.

Gold remains on the backfoot despite the growing risk aversion.

A broadly stronger dollar and dwindling bets around lower US interest rates have dealt gold a double blow. Traders are only pricing in just one Fed cut in 2026 thanks to concerns around conflict-induced inflation.

Gold’s near-term outlook may be influenced by the Fed decision on Wednesday. No changes are expected but the Fed may be forced to reassess its policy strategy for 2026. Looking at the charts, gold is wobbling above $5000 as of writing. Weakness below this point may open a path toward $4900 while a rebound could see prices retest resistance at $5100.

Speaking of central banks, the RBA raised interest rates on Tuesday for a second consecutive meeting.

Growing concerns around conflict-induced inflation shocks may prompt central banks to reassess their policy strategies for 2026.

The Federal Reserve (Fed), European Central Bank (ECB) and Bank of England (BoE), among many others will be under the spotlight this week.

Market expectations have rapidly evaporated over the Fed cutting rates anytime while the BoE/ECB are seen potentially hiking rates by the end of the year if inflation persists. These sharp shifts in policy expectations may translate to heightened levels of volatility.

Securities and Exchange Commission (SEC) yesterday said that Nigeria’s digital finance ecosystem recorded about $96bn in cryptocurrency and other virtual asset transactions.

Emomotimi Agama, director-general, SEC,

Emomotimi Agama, director-general, SEC, revealed this during a Citizens and Stakeholders Engagement Session organised by the Federal Ministry of Finance in Abuja.

He noted the the size of transactions within the digital asset space makes regulation necessary in order to protect investors and ensure transparency.

According to him, the regulatory framework for the sector was strengthened following the enactment of the Investment and Securities Act 2025, which gives the commission powers to regulate digital assets and other emerging financial technologies.

He said the law also confirms the SEC as the apex regulator of the capital market while introducing provisions aimed at monitoring systemic risks and aligning Nigeria’s market operations with global standards.

Agama said the Nigerian capital market has continued to support investment activities across the economy, adding that the commission approved ₦3.68 trillion worth of new capital market issues in 2024, covering both equities and fixed income instruments.

He added that the market played a major role in strengthening the banking sector during the recent recapitalisation exercise, with more than 31 banks raising funds through the capital market to meet new capital requirements.

The SEC director-general said the performance of the market has improved significantly in recent years, with total market capitalisation rising from ₦55 trillion in 2024 to about ₦127 trillion currently.

He added that the capital market’s contribution to the economy has also expanded, with the market capitalisation-to-GDP ratio rising from about 13 per cent to roughly 33 per cent.

According to him, the commission has introduced several measures aimed at protecting investors and building confidence in the market.

He disclosed that the regulator has issued more than 90 advisory notices warning Nigerians about suspicious investment schemes and risky financial offers.

Agama also said the commission has intensified its actions against fraudulent investment schemes, including Ponzi operations, while working with the Nigeria Police Force to investigate and prosecute offenders.

He warned that many people who fall victim to such schemes often invest in unregistered platforms promising unrealistic returns, advising investors to verify whether any investment opportunity is approved by the SEC before committing funds.

The SEC boss said the capital market has also supported infrastructure development across the country through bond issuances by state governments.

He explained that several public projects including markets, stadiums and other infrastructure have been financed through subnational bond issuances raised in the capital market.

According to him, Nigeria protects investors in state bonds through the Irrevocable Standing Payment Order (ISPO) system, which allows loan repayments to be deducted directly from states’ allocations from the Federation Account.

Agama said the commission has also established an Office of Municipal Fund Development to help state and local governments access capital market financing for development projects at the grassroots level.

He added that the SEC supported the launch of the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to help address Nigeria’s housing deficit by providing long-term funding that allows Nigerians access to mortgages at single-digit interest rates.

Looking ahead, he said the commission is working to deepen the market by raising the capital market capitalisation-to-GDP ratio from about 30 per cent toward levels seen in emerging economies such as India, where the ratio stands at about 92 per cent.

Also speaking at the session, Mr. Raymond Omenka Omachi, permanent secretary of the Federal Ministry of Finance, addressed concerns about the performance of the federal budget, explaining that several factors have affected implementation.

He said Nigeria has faced challenges meeting the oil production benchmark of about 2.1 million barrels per day, while fluctuations in global oil prices have also affected revenue.

The Permanent Secretary added that the budget benchmark was set at $75 per barrel, but oil prices at some point fell below $60 per barrel, reducing expected government revenue.

He noted that rising debt servicing obligations and increased salary commitments have also placed pressure on available funds.

According to him, the government is taking steps to improve the situation through regular monitoring of revenue and expenditure.

He said the ministry now holds weekly cash management meetings every Monday to review government finances and identify ways to boost revenue performance.

The Permanent Secretary added that the government expects improvements once Nigeria returns to operating a single budget cycle, noting that plans are underway to collapse overlapping budgets so that the country will run only one national budget from 2026 onward.