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, blaming greed and ignorance as key drivers of the recurring scam culture.
The revelation was made by the Head of FinTech and Innovation Department at the SEC, AbdulRasheed Dan-Abu, during a presentation on combating investment fraud at the Commission’s Journalist Academy held in Abuja.
Dan-Abu described Ponzi schemes as fraudulent investment setups that pay old investors from the contributions of new ones without engaging in any legitimate business.
“These schemes are not really doing anything. They are just collecting people’s money and using it to pay the initial investors. At some point, when there are no new investors, the whole thing crashes and the operators disappear,” he explained.
He lamented that the get-rich-quick mindset continues to make even educated Nigerians vulnerable.
“Everybody just wants to get rich today. That is actually what makes people fall into this trap. Education has not stopped greed,” he added.
Citing past examples, Dan-Abu recalled how MMM Nigeria lured thousands with promises of 30% monthly returns, and despite its collapse, some victims reinvested in new schemes. He also referenced the New Nation Women in Oil scam that duped about 155,000 rural women, many of whom sold properties to invest.
A breakdown of the SEC’s data revealed widespread losses:
- ₦100m each in Cow Lane and Durrell Nigeria Ltd
- ₦235m in Now-Now Alert
- ₦400m each in G-Circle Investment and Box Value Trading
- ₦900m in Yuan Dong
- ₦1.2bn–₦2bn in Dantata Success and Prof Coy
- ₦2.5bn in Famzi Intbiz
- ₦3.5bn in Bara Finance
- ₦7bn in Galaxy Construction and Transportation
- ₦18bn in MMM Nigeria
- ₦106.9bn in Nospecto Oil and Gas and other wonder banks
- Over ₦174bn in a single ongoing case still under investigation.
Although the report excluded the Crypto Bridge Exchange (CBEX) case—alleged to have defrauded Nigerians of over ₦1.3 trillion—the Commission said many such digital scams exploit aggressive marketing on social media, using WhatsApp groups and false promises of risk-free, high-yield investments.
“There is no business in the world where you can make a lot of money in a short time without risk. Anytime you see such promises, know that it’s a trap,” Dan-Abu warned.
He urged investors to verify all investment platforms with the SEC before committing funds and appealed to journalists to help raise public awareness.
“The press can really help us. If you write about this once a week, you could save thousands of people. Tomorrow, it might be your son, your cousin or your neighbour,” he said.
Meanwhile, SEC Director-General Dr. Emomotimi Agama, represented by Efe Ebelo, Head of External Relations, said Nigeria must strengthen digital asset regulation to protect investors and preserve confidence in the financial system.
“Digital assets are no longer a fringe experiment but a structural pillar of modern finance. Regulation is not about restriction; it’s about building trust and ensuring innovation serves progress, not predation,” Agama stated.
He noted that Nigeria ranks among the world’s top adopters of digital assets—with more than a third of its population involved in crypto-related activity—but cautioned that rapid growth has also opened the door to fraud and fake wallet schemes.
Agama said the Commission is collaborating with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to track and freeze illicit crypto wallets, adding that blockchain analytics tools are being deployed to trace suspicious transactions.
“Worldwide, regulators face the same paradox: clamp down too hard and innovation migrates offshore; regulate too softly and systemic risks multiply. Our duty is to strike the right balance,” he said.
He concluded that while the future of finance is digital, it must remain ethical, transparent, and trustworthy.
“In this new frontier of finance, trust is the ultimate currency—and as regulators, our highest duty is to preserve it.”