The Securities and Exchange Commission (SEC) has revealed that Nigerians lost an estimated N300.2 billion to fraudulent investment schemes in recent years, prompting the Commission to intensify its enforcement and investor protection measures across the financial sector.
Head of Fintech and Innovation Department at the SEC AbdulRasheed Dan-Abu, disclosed this during the 2025 Journalists Academy organised by the Commission in Abuja on Thursday.
Dan-Abu said the figure was compiled from investigations into some of Nigeria’s most notorious Ponzi and illegal investment schemes, which have devastated households and small investors across the country.
According to him: “The losses, drawn from investigations into some of the country’s most notorious Ponzi and illegal investment schemes, reveal the devastating financial and social impact of these operations on households and small investors. The SEC’s estimates cover several collapsed schemes that had promised investors extraordinarily high and unsustainable returns.”
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A breakdown of the figures showed that MMM Nigeria accounted for about N18 billion while Nospecto Oil and Gas defrauded investors of roughly N45 billion.
The MBA Forex and Capital Investment Ltd scheme wiped out N213 billion in investor funds before its collapse while Chinmark Group, Ovaioza Farm Produce Storage Business, and Famzhi Interbiz Ltd collectively cost Nigerians over N24 billion.
The SEC noted that these figures do not capture all fraudulent entities, as other unregistered schemes have caused additional losses running into tens of billions of naira.
Financial analysts believe the real losses could be significantly higher, given that many victims — particularly those in rural communities — fail to report their experiences to regulators or law enforcement agencies.
“These figures represent only a portion of the total losses suffered by the investing public,” a source at the Commission disclosed. “The actual losses could be far more significant given the number of unreported cases and the proliferation of online schemes that evade regulatory scrutiny.”
Disturbed by the persistence of these fraudulent operations, the SEC said it has intensified its regulatory crackdown to protect investors and preserve the integrity of Nigeria’s financial system.
According to the Commission, its new strategy combines investor education, strict enforcement, and inter-agency collaboration. It includes partnerships with the Economic and Financial Crimes Commission (EFCC), the Nigerian Financial Intelligence Unit (NFIU), and the Central Bank of Nigeria (CBN) to identify and freeze accounts linked to illegal investment operators.
Under this renewed enforcement drive, the SEC has secured court orders to shut down unregistered entities, initiated prosecution of their operators, and issued investor alerts naming firms engaged in unlawful solicitation. The Commission has also strengthened its technology-driven surveillance systems to track suspicious online investment advertisements, particularly across social media platforms.
