The Securities and Exchange Commission (SEC) has issued a strong warning to Nigerians, advising them to stay away from Silverkuun Investment Cooperative Society and Silverkuun Limited, both of which the Commission says are operating illegally in the Nigerian capital market.
In an official circular released on Wednesday, the Commission made it clear that the two companies are not registered to carry out any capital market activities such as investment advising or fund management in Nigeria.
“The attention of the Securities and Exchange Commission (‘the Commission’) has been drawn to the activities of Silverkuun Investment Cooperative Society/Silverkuun Limited which holds itself out as an investment adviser/fund manager,” the statement read.
The SEC categorically stated that Silverkuun Investment Cooperative Society and Silverkuun Limited are not recognized or licensed to offer investment products or manage investor funds. This makes any transaction with the companies illegal and dangerous for unsuspecting members of the public.
The warning is part of the Commission’s ongoing efforts to clamp down on unregistered investment schemes and protect Nigerian investors from falling victim to fraudulent operations. Over the past few years, several Ponzi schemes and fake investment companies have sprung up, targeting people who are looking for quick profits or high returns without proper due diligence.
The SEC warned that dealing with unregistered entities like Silverkuun could lead to serious financial loss. “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 circular emphasized.
It went on to stress that anyone investing with such entities risks losing their money entirely, as they are not protected by any legal framework or regulatory oversight.
“The Commission uses this medium to reiterate that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to financial risk including fraud and potential loss of investment,” the statement read. “The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities on the Commission’s portal before transacting with them.”
Speaking on the issue, Director-General of the SEC, Dr. Emomotimi Agama, vowed that the Commission will take strong action against illegal firms operating in the capital market.
“We will shut down their operations, and the promoters will be made to face the full weight of the law,” Agama said.
He also used the opportunity to highlight one of the major updates in the Investment and Securities Act 2025 (ISA 2025), which now officially recognizes digital assets as securities. This change means that all virtual asset service providers and crypto exchanges must register with the SEC if they want to operate legally in Nigeria.
“In a major reform, ISA 2025 officially brings digital assets under the SEC’s regulatory purview, defining them as securities and mandating registration for all virtual asset service providers and digital asset exchanges,” Agama stated.
To help curb fraud and increase investor awareness, the SEC has also launched investor education initiatives. These include digital campaigns, radio and podcast series, and plans to introduce capital market studies in schools and universities across the country.
“This is part of our strategy to equip Nigerians with the knowledge to detect and avoid dubious investments,” Agama added.
The SEC advised anyone interested in investing in Nigeria to first visit the Commission’s official website or portal to verify the status of any firm claiming to offer capital market products. It also encouraged the public to report suspicious activities.
Similar warnings was reported from the Commission in recent months as more Nigerians fall prey to fraudulent schemes promising quick returns. These schemes often collapse, leaving victims with no legal recourse.
With this latest warning, the SEC hopes to send a clear message that it is actively monitoring the capital market and will not hesitate to take enforcement action against any illegal operators.
