The Securities and Exchange Commission (SEC) has issued fresh warnings to Nigerians against investing in Property World Africa Network (PWAN), its investment arm PWAN MAX, and cryptocurrency platform Tofro.com, as the financial watchdog steps up crackdowns on what it describes as potentially fraudulent Ponzi schemes operating without regulatory approval.
Dr. Emomotimi Agama, Director-General of the SEC, says the Commission is raising the red flag as both PWAN and Tofro.com are operating outside the legal framework of Nigeria’s capital market, and pose significant risks to unsuspecting investors.
“The Commission hereby informs the public that the Tofro is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any other capacity within the Nigerian capital market,” SEC says in an earlier public notice.
PWAN and PWAN MAX, SEC warns, are also unregistered with the capital market regulator and are illegally soliciting funds from the Nigerian public under the guise of real estate investment. The Commission says it has recently been drawn to PWAN’s activities, which it claims exhibit “typical indicators of a fraudulent Ponzi scheme.”
SEC: PWAN, Tofro.com are potentially fraudulent operations
SEC is accusing Tofro.com, which claims to be a global blockchain financial service provider, of using high-return promises, referral-based payouts, and failure to honour withdrawal requests—hallmarks of a Ponzi scheme.
PWAN and PWAN MAX, SEC warns, are also unregistered with the capital market regulator and are illegally soliciting funds from the Nigerian public under the guise of real estate investment. The Commission says it has recently been drawn to PWAN’s activities, which it claims exhibit “typical indicators of a fraudulent Ponzi scheme.”
Nigeria’s capital market watchdog issued a stark warning to investors, urging them to steer clear of Property World Africa Network (PWAN) and its investment offshoot, PWAN MAX, over concerns of unauthorised and potentially fraudulent operations.
The SEC Director-General says the Commission is raising the red flag after uncovering that PWAN is soliciting funds from the public without regulatory approval — a breach of Nigeria’s Investment and Securities Act (ISA) 2007.
In a public notice, SEC says that it “has been drawn to the activities of ‘Property World Africa Network’ (PWAN), which holds itself out as a real estate investment company and is soliciting funds from the public for investment purposes, through ‘PWAN MAX’.”
Ponzi schemes typically rely on funds from new investors to pay earlier ones, rather than generating legitimate profits — a model that often crumbles when the flow of new money dries up. The global benchmark of such frauds remains the Bernie Madoff scandal in the United States, which collapsed with over $65 billion in investor losses.
The regulator is confirming that neither PWAN nor PWAN MAX is registered to operate in Nigeria’s capital market or to solicit investments, a requirement mandated by law to protect public interest.
SEC is also describing PWAN’s business model as showing “typical indicators of a fraudulent Ponzi scheme” — including the promise of unusually high returns and failure to honour withdrawal requests from subscribers.
“Accordingly, the public is strongly advised to be wary about investing with PWAN/PWAN MAX, as any person who places such investment with these entities, does so at his/her own risk,” SEC says.
Ponzi schemes typically rely on funds from new investors to pay earlier ones, rather than generating legitimate profits — a model that often crumbles when the flow of new money dries up. The global benchmark of such frauds remains the Bernie Madoff scandal in the United States, which collapsed with over $65 billion in investor losses.
The SEC warning is coming amid rising anxiety over mushrooming scam platforms across Nigeria’s fintech and property sectors — many of which exploit regulatory grey areas and the desperation of everyday Nigerians seeking quick returns.
Earlier, the Commission issued a similar warning following the collapse of Crypto Bridge Exchange (CBEX), a digital platform that reportedly defrauded Nigerians of over ₦1.3 trillion through fake AI-driven crypto trading schemes. CBEX, which operated under names like ST Technologies International Ltd and Smart Treasure/Super Technology, was also unregistered with the SEC.
In the case of PWAN, the company is promoting itself as a sprawling real estate brand with over 40 affiliate firms and numerous projects across the country. But the SEC is stating that the organisation lacks the legal licence to collect investment funds from the public.
Under Nigerian law, any individual or entity seeking to raise funds from investors must first be registered with the SEC in accordance with the ISA 2007.
SEC is advising the investing public to “VERIFY the registration status of investment platforms via the Commission’s dedicated portal before transacting with them.”
The move underscores the regulator’s push to clean up Nigeria’s volatile investment space and protect millions of retail investors vulnerable to unscrupulous operators promising too-good-to-be-true returns, according to SEC.
SEC reminds: verify before you invest
Under Nigeria’s Investment and Securities Act (ISA) 2007, any company or individual offering investment opportunities to the Nigerian public must register with the SEC. Failure to comply is illegal and subject to enforcement action.
To protect Nigerian investors, SEC is urging the public to verify the registration status of any investment platform via its official portal before engaging in any transactions.
As Nigeria’s fintech and real estate sectors grow, the watchdog says it remains committed to safeguarding the public by clamping down on unauthorised operators and ensuring a safe, transparent and regulated capital market for all.
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