Another CBEX? SEC Nigeria Sounds Alarm Over Unlicensed Investment Firms, Targets Silverkuun Entities [VIDEO]

 

The Securities and Exchange Commission (SEC) has issued a fresh warning to the Nigerian public, urging citizens to exercise extreme caution when approached by unregistered investment operators, specifically naming Silverkuun Investment Cooperative Society and Silverkuun Limited as unauthorized entities.

A recent circular released on Wednesday by the apex regulatory body of the Nigerian capital market revealed that these companies have been operating under false pretenses, misleading the public into believing they are licensed investment advisers and fund managers.

According to the Commission, both Silverkuun Investment Cooperative Society and Silverkuun Limited have never been granted the authority to function in any registered capacity within the Nigerian capital market framework. “The attention of the Securities and Exchange Commission (‘the Commission’) has been drawn to the activities of Silverkuun Investment Cooperative Society/Silverkuun Limited which holds itself out as an investment adviser/fund manager,” the statement read.

Public engagement with these firms has therefore been strongly discouraged. SEC emphasized that any form of business dealing with these entities could expose investors to severe financial hazards, including fraud, and potentially result in the total loss of invested capital.

Warning signs have become increasingly visible, as unsuspecting investors are lured by lofty promises of returns, only to fall victim to deceptive schemes. The Commission reiterated its call for Nigerians to adopt a more discerning approach before committing funds to investment opportunities.

“The Commission uses this medium to reiterate that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to financial risk including fraud and potential loss of investment. The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities on the Commission’s portal before transacting with them,” the Commission’s statement added.

Leadership at SEC appears to be taking a tougher stance on financial malpractice. Emomotimi Agama, the Commission’s Director-General, did not mince words when outlining the agency’s readiness to act. He made it clear that SEC is prepared to clamp down on such illegal operations and bring the full force of the law against the perpetrators.

“We will shut down their operations, and the promoters will be made to face the full weight of the law,” Agama warned, underlining the Commission’s zero-tolerance policy towards fraudulent activity.

One of the most significant updates emerging from SEC is the introduction of the new Investment and Securities Act 2025, which extends the Commission’s regulatory reach to digital assets. Under this new law, all virtual asset service providers and digital asset exchanges must register with the Commission, as digital assets are now officially recognized as securities within Nigeria.

This expansion is expected to bring more structure and transparency to Nigeria’s growing digital asset space, which has previously operated in a grey area lacking formal oversight. Agama noted that the regulatory shift is part of a broader reform agenda aimed at safeguarding investor interests in both traditional and emerging markets.

To complement enforcement measures, SEC is ramping up its investor education initiatives. The Commission has begun deploying modern outreach tools such as podcasts and digital media campaigns, while also integrating capital market literacy programs into educational curricula at the school and university levels.

“These educational programs are key to empowering Nigerians with the tools and knowledge they need to detect and avoid dubious investment schemes,” Agama said.

Reports from The PUNCH also confirm that the Commission has consistently urged the public to resist the allure of Ponzi schemes and other high-risk ventures. The regulatory body continues to stress the importance of verifying investment opportunities through official SEC channels before any financial commitments are made.

As the capital market evolves, the Commission’s proactive approach—through regulation, enforcement, and education—signals a strong commitment to investor protection and market integrity. The crackdown on Silverkuun is only the latest reminder that financial vigilance remains a critical responsibility for all market participants.