Nigeria's capital market regulators have issued a fresh warning to young investors about fraudulent investment schemes proliferating on digital platforms. The Lagos Commodities and Futures Exchange (LCFE), the Securities and Exchange Commission (SEC) and other market stakeholders made the appeal at the LCFE's sixth Annual Financial Literacy Seminar in Lagos on October 22, held to mark World Investor Week 2026. The event, themed "Invest Smart, Stay Alert: Protecting Investors from Commodity Investment Scams," brought together secondary and tertiary students alongside representatives from key financial institutions to promote financial literacy and raise awareness of investment fraud.
Nkechi Obi-Chidi, Head of Operations at the LCFE, urged young Nigerians to become ambassadors for the capital market by promoting legitimate investment opportunities. She emphasised the need to distinguish regulated investment schemes from fraudulent ones, particularly as young people increasingly encounter financial promotions across social media platforms. Obi-Chidi advised investors to verify investment schemes with the SEC before committing funds. Kelechi Azubuike-Luke, Senior Manager of the SEC's Financial Literacy Technical Committee, cautioned participants against schemes promising guaranteed profits or unusually high returns, and advised investors to confirm the registration status of capital market operators through the Commission's official channels.
The speakers stressed that investor protection requires collective responsibility among regulators, exchanges, market operators and the investing public. Athan Ogbozor, Executive Secretary of the Association of Securities Dealing Houses of Nigeria (ASHON), noted that the growing use of social media to promote investments makes investor vigilance increasingly important. He urged investors to question promises of unrealistic returns and verify the regulatory status of investment operators. Onome Komolafe, Divisional Head of Business Services and Client Experience at the Central Securities Clearing System (CSCS), stressed the need for investors to understand investment products before committing money, emphasising that sustainable financial growth depends on knowledge, informed decisions and a clear understanding of investment risks.
The seminar featured a financial literacy essay competition that challenged students to examine investment scams and demonstrate their understanding of responsible investing. At the tertiary level, Sesugh Innocent Tyokosu, a 300-level law student of Rev. Fr. Moses Orshio Adasu University in Benue State, won first place, while OdunmbakuDaniel Odunayo of Caleb University, Lagos, finished second. In the secondary school category, Enilama Jesse of ST&T Regency International School won first place, and Oseremen Omoyemen Oseghale of Corona Day Secondary School, Lekki, took second place. The LCFE said its annual financial literacy programme reflected its commitment to educating the public about commodity markets, investment risks and the importance of dealing with appropriately regulated operators.
Regulators' message to investors is clear: verify investment opportunities, question promises of quick profits and avoid making decisions based on peer pressure or social media endorsements. The seminar concluded with a call on young and prospective investors to prioritise informed financial decisions over the pursuit of unrealistic returns. For savers and investors in Nigeria, this means that verifying any investment opportunity with the SEC before committing funds can help protect against losing money to fraudulent schemes promoted online.