The Securities and Exchange Commission (SEC) has issued a public alert warning Nigerians that Glorious Wealth Fund (GWF) is operating as a Ponzi scheme. This comes after multiple investors reported being unable to withdraw their funds despite making deposits on the platform.
In its announcement on Thursday, the SEC revealed that GWF had been misleading the public by presenting itself as a licensed investment firm offering access to Nigerian stocks and other financial products.
The platform also claimed to be regulated by both the SEC and the Central Bank of Nigeria (CBN). A statement on its website read:
“Glorious Wealth Fund is a government-endorsed financial innovation initiative, supervised by the Securities and Exchange Commission of Nigeria (SEC Nigeria) and guided by the Central Bank of Nigeria (CBN).”
The SEC has now refuted these claims, stressing that GWF has no legal authorization to operate in the Nigerian capital market.
GWF Not Registered or Regulated — SEC
In its statement, the Commission clarified: “The Glorious Wealth Fund (GWF) is not registered or licensed by the Securities and Exchange Commission (SEC) Nigeria to carry out any form of capital market activity in the Nigerian capital market.”
The regulator noted that several users have filed complaints after being denied access to their investments or profits, behaviour commonly associated with illegal and deceptive schemes.
The SEC warned that refusal to process withdrawals or returns is a clear sign of a Ponzi-style operation aimed at defrauding unwary investors.
It added: “The public is advised to refrain from dealing with GWF, as any person who engages with the entity or its representatives does so at his/her own risk.”
The public is encouraged to verify the status of any investment company through the SEC’s official portal: www.sec.gov.ng/cmos.
N300 Billion Lost to Ponzi Schemes in Nigeria
The SEC also highlighted the severity of financial losses tied to Ponzi schemes in recent years. According to AbdulRasheed Dan-Abu, Head of the Commission’s Fintech and Innovation Department, Nigerians have collectively lost N300.2 billion to fraudulent schemes.
The major losses include:
- MMM Nigeria – N18 billion
- MBA Forex and Capital Investment Ltd – N213 billion
- Nospecto Oil and Gas – N45 billion
Other schemes such as Chinmark Group, Ovaioza Farm Produce Storage Business, and Famzhi Interbiz Ltd also defrauded Nigerians of more than N24 billion combined.
The SEC stated that the surge of unregistered online investment operators underscores the need for Nigerians to perform careful due diligence before investing.
