The Securities and Exchange Commission (SEC) has issued a strong public warning against an online investment outfit known as Value Growth Platform, also operating under the name HD Exchange Co Nigeria. The platform, which claims to offer market analysis, investment recommendations, and trading services, has been declared illegal and unlicensed to operate within Nigeria’s capital market.
In a statement released by the Commission, Value Growth Platform was found to be soliciting funds from the public despite lacking any form of registration or regulatory clearance. The SEC emphasized that the entity’s operations bear all the hallmarks of a fraudulent Ponzi scheme.
“Investigations have revealed that Value Growth Platform’s operations exhibit typical indicators of a Ponzi scheme, including promises of guaranteed returns, a referral-based reward system, and urgent appeals for account funding,” the statement read.
The Commission advised the public to avoid dealing with the platform, warning that any individual who transacts with the company or its representatives does so at their own risk.
Classic Red Flags
According to the SEC, the modus operandi of Value Growth Platform aligns with that of several previously collapsed schemes in the country. The promise of guaranteed returns, especially in volatile markets, remains one of the most common indicators of investment fraud.
The platform’s heavy reliance on user referrals—with incentives for recruiting new members—further raised concerns. SEC noted that such multi-level marketing strategies are often used to build unsustainable investment bubbles that eventually collapse, leaving investors with significant losses.
Cautionary Advice from the Commission
In light of this development, the SEC is urging members of the public to conduct proper due diligence before engaging with any investment firm. Specifically, the Commission recommends that potential investors verify the registration status of any platform via its official portals:
- https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators
- www.sec.gov.ng/cmos
The Commission’s statement stressed that platforms not listed on these portals are not authorized to operate within Nigeria’s capital market and should be treated with extreme caution.
Recurring Threat of Online Fraud
This latest warning adds to a growing list of alerts issued by the SEC in recent years, as online fraudsters continue to exploit Nigeria’s thriving fintech environment. From MBA Forex to Brisk Capital and Racksterli, numerous platforms have collapsed under scrutiny—often after defrauding investors of billions of naira.
Analysts say this trend highlights the urgent need for improved investor education and tighter enforcement within the digital financial services space.
The SEC reiterated that it remains committed to protecting investors and preserving the integrity of Nigeria’s capital market. It urged the public to remain vigilant and report suspicious platforms through official communication channels, including phone lines and emails provided by the Commission.
“Let this serve as a clear warning,” the Commission stated. “Investors must think twice before trusting any platform that offers unrealistic returns or lacks regulatory approval. Always verify before you invest.”
For inquiries or further reports, contact:
📞 +234 2094621168-9 | 📱 0916 772 3240
📧 Email: sec@sec.gov.ng
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