SEC warns Nigerians against investing with Silverkuun
The Securities and Exchange Commission (SEC) has cautioned Nigerians against engaging with unregistered investment platforms, specifically naming Silverkuun Investment Cooperative Society and Silverkuun Limited as entities illegally operating in the country’s capital market.
In a public circular issued Wednesday and supported by a press release in Abuja, the Commission stated that Silverkuun has been posing as an investment adviser and fund manager, even though it lacks the legal authority to carry out such activities within the Nigerian capital market.
“The Commission hereby informs the public that Silverkuun Investment Cooperative Society/Silverkuun Limited is not registered to operate in any capacity in the Nigerian Capital Market,” the statement read.
As a result, the SEC urged the investing public to avoid all forms of transactions or engagement with the company or its representatives. It warned that doing business with unlicensed or unregulated entities poses serious financial risks, including exposure to fraud and total loss of investment.
To help investors verify the legitimacy of firms offering financial services or investment opportunities, the Commission encouraged the public to use its official online portal at www.sec.gov.ng/cmos.
The SEC has repeatedly raised concerns about the increasing number of entities falsely claiming to be legitimate investment advisers, fund managers, or virtual asset service providers (VASPs). Many of these operators lure unsuspecting individuals with promises of high returns, only to disappear with investor funds.
Speaking further on the matter, the Director General of the Commission, Dr. Emomotimi Agama, warned that SEC would take firm action against companies and individuals who bypass regulatory procedures.
“We will shut down their operations, and the promoters will be made to face the full weight of the law,” Dr. Agama declared.
He said the Commission is stepping up its regulatory actions under the soon-to-be-enacted Investment and Securities Act (ISA) 2025, which officially brings digital assets under the SEC’s oversight. According to Agama, the Act will define digital assets as securities and require all virtual asset service providers and digital exchanges to register with the Commission.
This regulatory update aims to tackle the growing menace of Ponzi-style platforms that have used the cover of digital finance and cryptocurrency to operate unchecked.
In addition to regulatory enforcement, the Commission is also expanding its investor protection initiatives by raising awareness. Dr. Agama noted that the SEC is adopting an education-first approach to reduce the number of people falling victim to investment scams. These efforts include podcasts, social media campaigns, and the introduction of capital market literacy programs in secondary schools and universities.
“We are committed to ensuring that Nigerians understand how to spot fraudulent schemes and know the steps to take to protect themselves,” Agama stated.
The SEC’s latest warning comes at a time of increased scrutiny of informal investment schemes in Nigeria, especially as more Nigerians seek alternative ways to grow their savings amid rising inflation and economic pressure. The Commission reiterated that genuine investment opportunities must be properly registered, transparent, and accountable to both regulators and the public.
Investors are urged to always conduct due diligence and consult only registered capital market operators before making financial commitments.
