The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians against investing in the fraudulent scheme known as GVEST GLOBAL, describing it as an unregistered and illegitimate operation. According to the regulator, GVEST has been parading itself as an investment fund manager and adviser while running aggressive campaigns to lure unsuspecting Nigerians. SEC clarified that the company, along with its associated entities — GVEST (ALAUSA) Cooperative Multipurpose Limited, GVEST Investment Limited and GTEXT Holdings — has no approval to solicit investments or operate in the Nigerian capital market.
Indications from the commission show that GVEST GLOBAL exhibits the classic traits of a Ponzi scheme, leveraging social media and online forums to promote unrealistic returns. SEC emphasized that the scheme, like others before it, poses significant financial risk to citizens. The regulator advised the public to always verify the registration status of investment platforms through its official portal before committing funds.
This development follows a troubling pattern, as several dubious entities have been flagged in recent years, including Pocket Option, Forsman & Bodenfors LTD (F&B), Tofro, Sapphire Scents Limited, and the notorious Crypto Bridge Exchange (CBEX). CBEX, in particular, left thousands of Nigerians devastated after billions of naira were lost to its unregulated operations. Despite registering with the Corporate Affairs Commission (CAC) and the EFCC’s Special Control Unit Against Money Laundering, CBEX failed to obtain SEC approval, exposing the dangers of relying solely on CAC registration for legitimacy.
The dangers of Ponzi schemes in Nigeria are underscored by their devastating impact over the years. According to industry estimates, Nigerians have collectively lost over ₦300 billion to fraudulent schemes between 2016 and 2024, with high-profile cases like MMM Nigeria, which collapsed in 2016 and wiped out the savings of over 3 million Nigerians, and the MBA Forex scam in 2021, where investors reportedly lost more than ₦213 billion. The persistence of such schemes highlights the urgent need for vigilance and proper regulatory checks.
Speaking earlier this year, SEC Director-General Emomotimi Agama urged Nigerians to be cautious of platforms offering unrealistic profits, stressing that “if it’s too good to be true, then it’s not true.” He reaffirmed that only SEC registration confers legitimacy on an investment scheme, not CAC incorporation. The regulator advised Nigerians to seek guidance from licensed financial advisers, lawyers, and brokers while reminding investors that genuine opportunities exist only through properly regulated public offerings and collective investment schemes.
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