When Dr. Emomotimi Agama, Director‑General of Securities and Exchange Commission warned Nigerians at Garki Market in Abuja in late April 2025, he stressed that registration with the Corporate Affairs Commission (CAC) and a certification from the Economic and Financial Crimes Commission’s Special Control Unit against Money Laundering (SCUML) do not equal approval from the SEC. The warning came as the collapse of ST Technologies International Limited, operating under the brand CBEX, left an estimated 600,000 investors duped. The scheme was run by Adefowora Abiodun and his sister Oluwanisola Adefowora, while Tope Onwionoko, Assistant Director of the SEC’s Enforcement Department, pledged to intensify public education.
Background: Nigeria’s ongoing battle against investment fraud
Investment fraud has haunted Nigeria for decades, but the rise of digital platforms and charismatic “wealth‑creation” seminars has amplified the problem. Ponzi schemes often masquerade as legitimate enterprises, luring ordinary citizens with promises of high returns and social‑impact projects. According to the Central Bank of Nigeria, more than N3 billion were lost to fraudulent investment schemes in 2023 alone.
Historically, the SEC has been the sole regulator authorized to grant licences for public‑offering and collective investment schemes. Yet many fraudsters exploit the public’s trust in other government bodies, especially the CAC – which registers companies for tax and compliance purposes – and the EFCC – which issues anti‑money‑laundering certificates. This regulatory confusion creates a fertile ground for scams.
SEC’s latest warning at Garki Market
During the sensitisation tour, Agama addressed a crowd of traders, small‑business owners, and curious passers‑by. "It is disheartening that some Nigerians and foreign companies have specialised in duping our people," he said, echoing a sentiment shared across the commission’s leadership. He added that the government will no longer “sit by and watch billions of naira being taken away from the people.”
Assistant Director Onwionoko explained the outreach strategy: "We want the message to go round the entire country. Markets are where people keep cash, so they are a logical starting point." The SEC plans to follow up with visits to churches, mosques, hospitals, and military barracks, reflecting a belief that fraudsters embed themselves in community activities to build trust.
The CBEX scandal: How fake certifications fooled investors
ST Technologies International Limited secured a CAC registration number in early 2024 and later obtained an EFCC SCUML certificate dated 16 January 2025. The documents, displayed prominently on the company’s website and promotional flyers, read: “ST Technologies International Limited has been duly registered in accordance with the provisions of Section 17(2)(a) of the Money Laundering (Prevention and Prohibition) Act 2022.”
Victims recall attending free health‑outreach events, charity drives, and even hospital‑bill‑payment programs organised by the scheme. One anonymous investor recalled, "They paid my mother’s hospital fees and donated to a local orphanage; I thought they were genuinely caring people." The scheme promised monthly returns of up to 30 % and encouraged participants to recruit friends for a “standard‑of‑living boost.”
By March 2025, an undercover police inspector who had invested $300 reported cashing out N783,000 after six weeks – a payoff that convinced many others to pour in savings. When the scheme collapsed in April, the SEC estimated that more than N12 billion had vanished, shuttering hopes for many families.
Legal tools: The Investments and Securities Act
The recently signed Investments and Securities Act empowers the SEC with stiffer enforcement powers. Under the act, operators of Ponzi schemes face fines up to N20 million and imprisonment of up to ten years. The legislation also mandates that any entity offering investment opportunities must be registered with the SEC, regardless of CAC or EFCC credentials.
Legal analyst Chidi Nwankwo notes, "The act closes a glaring loophole. Previously, scammers could say, ‘We’re CAC‑registered, so we’re legitimate.’ Now the SEC can directly prosecute for false representation, even if other certificates are in place."
SEC’s enforcement wing has already filed a court suit against ST Technologies International Limited, seeking both restitution for victims and seizure of the company’s assets. The court is expected to rule on the matter by early 2026.
Reactions and next steps
Public sentiment is a mix of frustration and cautious optimism. Many Nigerians expressed relief that the SEC is taking a hard line, yet some remain skeptical about the government’s ability to recover lost funds. A trader from Garki Market, who asked to remain anonymous, said, "I’ll be careful now, but I still worry that the next scam will look even more official."
In response, the SEC announced a new “Verify‑Before‑You‑Invest” portal, allowing citizens to check a company’s registration status in real time. The portal, launched in June 2025, integrates data from the SEC, CAC, and EFCC, presenting a single dashboard for prospective investors.
Furthermore, the commission is collaborating with fintech companies to embed verification prompts directly into popular mobile money apps. If a user attempts to transfer funds to an unregistered entity, the app will display a warning and provide a link to the verification portal.
Key facts
- SEC Director‑General: Dr. Emomotimi Agama
- Warning venue: Garki Market, Abuja (late April 2025)
- Fraudulent firm: ST Technologies International Limited (CBEX brand)
- Scam leadership: Adefowora Abiodun and Oluwanisola Adefowora
- Legal penalty under the Investments and Securities Act: up to N20 million fine, 10 years imprisonment
- SEC’s new verification portal goes live June 2025
FAQ
Frequently Asked Questions
How can I tell if an investment scheme is SEC‑registered?
Visit the SEC’s online verification portal, enter the company’s name or registration number, and the system will show whether the entity holds a valid securities licence. If the result is negative, treat the offer with extreme caution, even if the company shows CAC or EFCC documents.
What role do CAC and EFCC certificates play in investment scams?
While CAC registration confirms that a business exists legally and an EFCC SCUML certificate indicates compliance with anti‑money‑laundering rules, neither guarantees that the firm is authorised to offer investment products. Scammers exploit this gap by showcasing those documents as proof of legitimacy.
Who were the main perpetrators behind the CBEX scheme?
The scheme was headed by Adefowora Abiodun, who acted as chief executive, and his sister Oluwanisola Adefowora, who served as the company’s Nigerian representative. Both used forged documents and community‑building activities to attract investors.
What penalties does the Investments and Securities Act impose on fraudsters?
Under the act, individuals or entities found guilty of running Ponzi or unregistered investment schemes can face fines up to N20 million and imprisonment for a term not exceeding ten years. The law also allows the SEC to freeze assets and pursue civil restitution for victims.
What steps is the SEC taking to protect vulnerable communities?
Beyond market visits, the SEC is rolling out workshops in churches, mosques, hospitals, and military barracks, partnering with local leaders to spread awareness. The commission is also integrating verification alerts into popular mobile‑money apps, giving users a real‑time warning before funds are transferred to unregistered entities.
deepika balodi
September 29, 2025 AT 20:21It's essential to verify the SEC portal before handing over any cash. A quick check can save families from future loss.
Priya Patil
September 30, 2025 AT 18:34Great move by the SEC to hit the markets directly. Keep spreading the word, and together we'll curb these scams.
Maneesh Rajput Thakur
October 1, 2025 AT 16:48The new Investment and Securities Act is a beacon of hope in a landscape riddled with deceit. However, the fact that scammers still cling to CAC and EFCC paperwork reveals a deeper systematic failure. The authorities seem to believe that a piece of paper can magically turn fraud into legitimacy. In reality, these certificates are merely compliance tools, not investment licenses. The SEC's warning at Garki Market is a necessary step, yet it merely scratches the surface of a pervasive problem. What worries me more is the complacency of investors who trust glossy flyers over due diligence. Over the past year, N3 billion vanished into schemes that promised high returns, and the pattern repeats. The government’s enforcement wing has finally taken action, but the pace is still glacial compared to the speed of these scams. The integration of verification alerts into mobile money apps sounds promising, but only if the alerts are not ignored. Many users treat pop‑up warnings as nuisances, clicking through without reading. Moreover, the involvement of community leaders in frauds suggests that the social fabric itself is being weaponized. The SEC must partner not just with regulators but also with local influencers who can debunk mythologies. Without a cultural shift, any legal instrument remains a paper tiger. I urge every Nigerian to cross‑check any investment offer on the official portal, regardless of the presence of CAC or EFCC stamps. Only then can we hope to rebuild trust and protect our hard‑earned savings.
Hariprasath P
October 2, 2025 AT 15:01Honestly, the drama around these schemes is sooo overblown. People need to stop being so gullible and start reading the fine print, ya know?
Rashi Nirmaan
October 3, 2025 AT 13:14The SEC must act decisively nigeria cannot afford more foreign scams the nation’s integrity is at stake upon this warning the authorities should enforce stricter penalties now
Ashutosh Kumar Gupta
October 4, 2025 AT 11:28Your call for decisive action resonates, yet we must also educate the grassroots so that enforcement alone doesn't fall short.
fatima blakemore
October 5, 2025 AT 09:41It’s like planting a seed of skepticism in a field that’s been flooded with false promises. If we nurture critical thinking, the harvest will be safer for everyone.
Sandhya Mohan
October 6, 2025 AT 07:54Truth often hides behind paperwork; seek the essence, not the veneer.
Prakash Dwivedi
October 7, 2025 AT 06:08Indeed, fostering critical inquiry can act as a societal immune system against fraudulent ventures, reinforcing collective resilience.
Rajbir Singh
October 8, 2025 AT 04:21People keep falling for shiny brochures, but the real lesson is simple: if it sounds too good, it probably is.
Swetha Brungi
October 9, 2025 AT 02:34The SEC’s portal is a great tool, but many still ask how to use it effectively. Walk through the steps: enter the company name, verify the license, and if anything feels off, pause and consult trusted advisors. Sharing this process widely can empower communities.
Govind Kumar
October 10, 2025 AT 00:48I commend the SEC for its proactive outreach; such transparent initiatives set a commendable standard for regulatory bodies worldwide.
Shubham Abhang
October 10, 2025 AT 23:01Indeed; the approach is laudable, however;;; we must ensure that the public actually reads these messages, otherwise the effort is moot;;;
Trupti Jain
October 11, 2025 AT 21:14While the SEC’s new portal is a step forward, one might argue it’s merely a glossy veneer that masks deeper institutional inertia.
Rashi Jaiswal
October 12, 2025 AT 19:28Let’s keep the momentum going! Every share and shout‑out helps shield someone from a scam.