Beware! SEC Warns Public Against GVEST Ponzi Operations

The Securities and Exchange Commission (SEC) has raised fresh alarm bells over the activities of GVEST Global and its associated companies, cautioning Nigerians to steer clear of what it described as unauthorized investment schemes exhibiting Ponzi-like traits.

The firms—trading under different names including GVEST (Alausa) Cooperative Multipurpose Limited, GVEST Investment Limited, and Gtext Holdings—have been parading themselves as investment advisers and fund managers despite not being licensed by the Commission to operate in any capacity in the Nigerian capital market.

SEC investigations reveal that GVEST has been aggressively promoted across social media and online forums, targeting everyday Nigerians with promises of mouthwatering returns. “The operations of GVEST Global bear the classic characteristics of Ponzi schemes,” SEC warned in its official statement, urging the public to refrain from engaging with the entities.

Echoes of a Painful Past

For many Nigerians, this warning is more than regulatory jargon—it stirs up painful memories of past financial scams that devastated households, emptied life savings, and eroded trust.

Take the story of Chika, a small businesswoman in Aba, who invested her entire ₦500,000 savings in the infamous MMM Nigeria scheme in 2016. She had hoped the promised 30% returns would help expand her tailoring business. Instead, MMM collapsed under the weight of its unsustainable model, leaving Chika in debt and forcing her to shut down her shop.

Or consider Mr. Adeyemi, a retired teacher in Ibadan, who was lured by the cooperative-style structure of Nospecto Oil and Gas in the mid-2000s. Believing he was investing in a legitimate oil venture, he poured in his pension lump sum. When the scheme was shut down by regulators, Adeyemi was left destitute, relying on his children for survival.

The story repeats across generations. From the “wonder banks” of the 1990s to the flashy online scams of the 2010s, thousands of Nigerians have fallen prey to schemes disguised as cooperatives, investment clubs, or technology-driven platforms. They all carry the same DNA—unsustainable returns, emotional marketing, and eventual collapse.

The Human Cost of Fraud

Management, Securities and Exchange Commission (SEC) Nigeria, further disclosed that behind every collapsed Ponzi scheme lies not just financial ruin but emotional trauma. Families have been torn apart when breadwinners lost their savings. Marriages have crumbled under the weight of debt. Young graduates, hoping to “multiply” their NYSC stipends, have been pushed back into poverty after being defrauded.

Analysts say the cycle continues because economic desperation fuels financial gullibility. With inflation eroding purchasing power and unemployment biting hard, many Nigerians are vulnerable to quick-fix promises. Fraudulent operators exploit this desperation, using social media influencers, glossy adverts, and cooperative-style structures to create a veneer of legitimacy.

A Call for Vigilance

This is why SEC’s latest warning is critical. It reminds Nigerians that genuine investment operators are always listed on its portal: www.sec.gov.ng/cmos. A quick verification could save months—or even years—of pain.

“The lesson from MMM, Nospecto, and other collapsed schemes is simple,” says financial analyst Tunde Oyekunle. “If it sounds too good to be true, it probably is. Nigerians must resist the temptation of easy money and demand proof of legitimacy.”

SEC’s advice is blunt: anyone who engages with GVEST Global or its affiliates does so at their own risk.

Reflection

At the heart of this issue lies a broader societal challenge: how to protect citizens in a struggling economy where hope is scarce, and promises of quick wealth are irresistible. As regulators continue their crackdowns, the public must also learn from the past.

Because behind every Ponzi warning is not just a regulatory statement—it is a reminder of lives shattered, dreams lost, and the painful cost of financial naivety.

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