The Securities and Exchange Commission (SEC) has issued a strong warning to the Nigerian public about Value Growth Platform, an online investment entity suspected of operating a Ponzi scheme disguised as a legitimate financial service.
In an official statement released on Friday, the SEC disclosed that the platform presents itself as a high-level investment service, offering market analysis, investment recommendations, and third-party trading support. However, investigations have shown that these claims are both deceptive and unlawful.
“The Commission hereby informs the public that Value Growth Platform is not registered by the SEC to solicit investments or operate in any form within the Nigerian capital market,” the statement emphasized.
Red Flags: Features of a Fraudulent Scheme
According to the SEC, *Value Growth Platform* displays several characteristics commonly associated with fraudulent operations. These include:
- Unrealistic guarantees of high returns
- Aggressive referral systems with monetary rewards
- Pressure tactics urging users to deposit funds quickly
The Commission warned, “Any individual who chooses to engage with this platform or its representatives does so at their own risk.”
Part of SEC’s Broader Crackdown on Fraud
This alert is part of a broader regulatory clampdown by the SEC aimed at protecting Nigerian investors from rising financial scams in the country’s increasingly digital investment space.
Just a week prior, the SEC raised a similar red flag against CMTrading, a crypto and commodities trading company. The platform claims an affiliation with GCMT South Africa Pty Ltd and asserts licensing from the Financial Sector Conduct Authority (FSCA) of South Africa and the Financial Services Authority (FSA) of Seychelles. Despite these assertions, the SEC reiterated that CMTrading is not authorized to operate or solicit investments in Nigeria.
Cryptocurrency Projects Also Under Scrutiny
In addition, the SEC cautioned against investing in Zugacoin and Samzuga GPT, citing significant concerns over their legitimacy. The Commission specifically mentioned that the ongoing promotion of derivative tokens like SZCB and SZCB2—linked to Zugacoin—is unauthorized and lacks regulatory approval.
“These digital assets have not been approved by the Commission for issuance or trading in Nigeria,” the SEC clarified.
Officials further noted that many of these tokens, often categorized as *meme coins*, lack intrinsic value or clear utility. Their prices are largely driven by social media hype and influencer endorsements, making them highly speculative and vulnerable to manipulation.
Final Advice to Investors
The SEC urged the public to exercise extreme caution and always verify the registration status of any investment service through the official SEC portal or contact channels before engaging. Investors are encouraged to steer clear of platforms that promise guaranteed returns or use high-pressure sales tactics.
“Regulatory approval is not optional. It’s a safeguard against fraud,” the SEC concluded.
