Nigeria’s capital market watchdog has sounded the alarm over operations of a real estate-linked platform, PWAN MAX, cautioning the public to avoid committing funds to what it described as a high-risk and unauthorized investment scheme.
In a formal advisory released recently, the Securities and Exchange Commission (SEC) disassociated itself from PWAN and its affiliate, PWAN MAX, stating that neither entity holds valid registration to conduct investment business or raise capital within the country.
The Commission noted that it had received a wave of complaints and disturbing reports about the company’s activities, including unreasonably high return promises and an increasing number of unfulfilled withdrawal requests, common traits seen in schemes designed to deceive.
According to SEC, these red flags strongly suggest a structure similar to that of other collapsed money-doubling operations, where early investors are paid using funds from newer ones, a hallmark of Ponzi setups.
The public was urged to exercise extreme caution and confirm the legitimacy of any investment outfit through SEC’s verification portal before engaging. “Invest at your own risk,” the advisory warned bluntly, referring to PWAN’s unauthorized status.
This latest warning trails the recent implosion of CBEX, a digital trading outfit that lured in over 600,000 Nigerians before collapsing, reportedly wiping out close to N1.2 trillion in funds. CBEX had dangled a 100% return promise within 30 days, allegedly based on AI-powered trading.
The Commission emphasized that although the firm had been registered with the Corporate Affairs Commission and listed with the EFCC’s anti-money laundering unit, it lacked the SEC’s express license to operate in the capital market.
With the recent enactment of the Investments and Securities Act (ISA 2025), signed into law by President Bola Tinubu, SEC now holds greater authority to go after peddlers of unregulated schemes. Offenders may now face up to 10 years imprisonment and a fine of N40 million.
SEC’s Director General, Emomotimi Agama, stated that the agency will no longer hesitate to enforce the new law against any individual or platform promoting fraudulent financial schemes across the country.
