The Director-General of the Securities and Exchange Commission, Emomotimi Agama, has raised concerns over the rising cases of fraud involving digital and virtual assets, warning that such activities are undermining investor confidence and threatening the integrity of Nigeria’s capital market.

Speaking in Abuja at an event to mark African Union Anti-Corruption Day, themed ‘Understanding Virtual Assets and Investment Fraud,’ Agama noted that corruption remains a major barrier to economic development across Africa, and the emergence of fraudulent schemes in the digital space is compounding the problem.

“Today, as digital innovation transforms financial systems, we face new challenges, particularly the rise of virtual asset fraud and sophisticated investment scams exploiting unsuspecting investors. These threats undermine market integrity, erode trust, and divert resources meant for sustainable development,” he said.

The SEC boss stressed that the Commission is taking decisive steps to strengthen investor protection through regulatory reforms and public education. He explained that the recently passed Investment and Securities Act of 2025 contains key provisions to regulate virtual assets such as cryptocurrencies, digital tokens, and other blockchain-based assets.

Agama stated, “The SEC, as a frontline regulator, remains committed to strengthening investor education on recognising and avoiding fraudulent schemes, enhancing regulatory frameworks to keep pace with evolving risks in virtual assets and digital investments, and fostering cross-border collaboration to combat corruption and illicit financial flows.”

He added that all Virtual Asset Service Providers, including exchanges, custodians, and brokers, are now required to obtain SEC approval and meet strict capital, governance, and cybersecurity standards. He also emphasised the need for full risk disclosures to investors.

“All platforms must warn investors about volatility, fraud, and regulatory risks. There are stiff penalties under the law for market manipulation, insider trading, and Ponzi schemes,” he said.

According to Agama, the ISA 2025 provides a comprehensive legal framework that balances innovation with investor protection and financial stability.

He assured that the Commission will continue to issue guidelines to ensure compliance and foster a secure digital asset ecosystem in Nigeria.

“We urge all stakeholders—governments, private sector players, civil society, and citizens, to join forces in promoting transparency, accountability, and ethical practices. Together, we can build resilient markets that drive Africa’s prosperity,” he added.

In his remarks, the Chairman of the Economic and Financial Crimes Commission, Mr. Ola Olukoyede, described virtual asset fraud as a rapidly growing threat to Nigeria’s economic security.

“Another rising criminal engagement that has the potential to outpace even money laundering on the continent is virtual assets and investment scams,” Olukoyede warned.

The PUNCH reported that the Securities and Exchange Commission has raised concerns over the growing threats posed by Ponzi schemes and other illegal investment platforms, warning that such activities endanger the growth and stability of Nigeria’s capital market.