The Lagos Commodities and Futures Exchange (LCFE), the Securities and Exchange Commission (SEC) and other capital market stakeholders have warned young Nigerians against fraudulent investment schemes promoted through social media, urging prospective investors to verify operators’ regulatory status before committing funds.
The warning, issued at the LCFE’s sixth Annual Financial Literacy Seminar in Lagos recently, comes amid growing concerns over investment promotions that promise guaranteed profits and unusually high returns without adequately disclosing the risks involved.
Held to commemorate World Investor Week 2026 under the theme, “Invest Smart, Stay Alert: Protecting Investors from Commodity Investment Scams,” the seminar brought together students from secondary schools and tertiary institutions alongside representatives of key financial market institutions to promote responsible investing and strengthen public awareness of investment fraud.
The stakeholders said financial literacy, regulatory verification and investor discipline were essential to protecting young Nigerians as digital platforms increasingly became channels through which investment opportunities were advertised and financial decisions influenced.
Representing Akin Akeredolu-Akeredolu, managing director of LCFE, Nkechi Obi-Chidi, head of operations at the Exchange, urged students to become ambassadors for Nigeria’s capital market by promoting legitimate investment opportunities and encouraging others to verify investment schemes with the SEC before investing.
She emphasised the need for young people to distinguish regulated investment products from fraudulent offers, particularly as financial promotions circulate widely across social media and other digital channels.
The SEC reinforced the warning, cautioning investors against schemes that guarantee profits or promise returns that appear unusually high.
Kelechi Azubuike-Luke, senior manager, Financial Literacy Technical Committee at the SEC, who represented the Commission, advised participants to confirm the registration status of capital market operators through the regulator’s official channels before engaging with them.
She also warned against making investment decisions based solely on peer pressure, online endorsements or persuasive social media promotions.
Speaking on behalf of the Association of Securities Dealing Houses of Nigeria (ASHON), Athan Ogbozor, its executive secretary, commended LCFE for sustaining the financial literacy initiative.
Ogbozor urged investors to question promises of unrealistic returns and independently establish the regulatory status of investment operators, noting that the growing use of social media to market investments makes vigilance increasingly important.
He stressed the importance of investor scrutiny at a time when online promotions can create an impression of legitimacy without necessarily providing sufficient evidence of regulatory authorisation.
Onome Komolafe, divisional head, Business Services and Client Experience at the Central Securities Clearing System (CSCS), said investors needed to understand the financial products they were considering before committing their money.
She encouraged young Nigerians to exercise patience and discipline in wealth creation, stressing that sustainable financial growth depends on knowledge, informed decision-making and a clear understanding of investment risks.
The speakers agreed that investor protection could not be left to regulators alone but required coordinated efforts by exchanges, market operators, financial institutions and the investing public.
A major highlight of the seminar was the presentation of awards to winners of LCFE’s financial literacy essay competition, which 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, Makurdi, Benue State, emerged first, while Odunmbaku Daniel Odunayo of the Department of Economics, Caleb University, Lagos, took second place.
In the secondary school category, Enilama Jesse, a Year 11 (SSS2) student of ST&T Regency International School, won first place, while Oseremen Omoyemen Oseghale of Corona Day Secondary School, Lekki, finished second.
The competition provided a platform for students to engage with investment fraud, financial responsibility and investor protection, reinforcing the role of financial education in preparing young people for informed participation in the capital market.
The Exchange’s annual financial literacy programme also seeks to improve understanding of investment opportunities while equipping prospective investors with the knowledge to identify warning signs associated with fraudulent schemes.
The seminar concluded with a renewed call on young and prospective investors to verify investment opportunities, question promises of quick profits and prioritise informed financial decisions over the pursuit of unrealistic returns.
