The National Orientation Agency (NOA) and the Securities and Exchange Commission (SEC) have signed a Memorandum of Understanding (MoU) to strengthen public awareness on safe investment practices, particularly in the digital space, and curb the rising spread of Ponzi schemes across Nigeria.
The partnership comes amid a surge in digital investment platforms promising high returns, many of which have turned out to be fraudulent schemes that have defrauded thousands of Nigerians. The trend has grown alongside increased adoption of fintech platforms and mobile-based investment applications across the country.
Under the agreement, both agencies say they will collaborate to equip Nigerians with the knowledge and tools required to make informed financial decisions and avoid falling victim to fraudulent online investment opportunities.
A key component of the initiative is a nationwide capacity-building programme for NOA personnel, aimed at ensuring accurate and consistent dissemination of information on safe investment practices. The programme will leverage NOA’s extensive grassroots network to drive financial literacy campaigns across states and local communities, with a strong focus on digital and app-based investment awareness.
One of the most notable cases remains MMM Nigeria, which in 2016 reportedly attracted about three million participants before collapsing and wiping out billions of naira in savings. Since then, several schemes, including CBEX (Crypto Bullion Exchange), BitFinance Global, ADK Betting Platform, and Wealth Buddy, have emerged, targeting digitally connected audiences.
Speaking at the signing, the Director-General of NOA, represented by David Akoji, Director of Special Duties and State Operations, reaffirmed the agency’s commitment to the collaboration, commending SEC for initiating the partnership.
“There have been numerous reports of financial crimes disguised as investment opportunities,” Akoji said, noting that the initiative would provide Nigerians with timely and credible information to safeguard their finances.
Both agencies say the collaboration is designed to deepen public understanding of investment risks, promote financial literacy, and build a more informed and financially secure society, particularly as more Nigerians engage with digital financial platforms.
Nigeria and rising sophistication of Ponzi schemes
Ponzi schemes in Nigeria have evolved significantly over the years, transitioning from informal “wonder banks” to sophisticated digital operations leveraging emerging technologies.
Recent schemes increasingly deploy cryptocurrencies, artificial intelligence, and decentralised finance (DeFi) models, while using social media marketing, influencer endorsements, and polished mobile interfaces to project legitimacy and attract unsuspecting investors.
One of the most notable cases remains MMM Nigeria, which in 2016 reportedly attracted about three million participants before collapsing and wiping out billions of naira in savings. Since then, several schemes, including CBEX (Crypto Bullion Exchange), BitFinance Global, ADK Betting Platform, and Wealth Buddy, have emerged, targeting digitally connected audiences.
Ponzi operations have reportedly cost Nigerians over ₦316 billion, with some individual schemes accounting for tens of billions in losses. In 2024, the Economic and Financial Crimes Commission (EFCC) flagged at least 58 companies suspected of operating illegal investment schemes.
The NOA-SEC partnership is expected to play a critical role in addressing this growing threat by combining regulatory oversight with grassroots public sensitisation, as Nigeria’s digital financial ecosystem continues to expand.
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