Nigeria's SEC Flags Tofro.com as Fraudulent Ponzi Scheme, Warns Public Against Investment

Gate News message, April 17 — Nigeria’s Securities and Exchange Commission (SEC) issued a public notice warning the public against investing in Tofro.com, identifying the platform as an unregistered and fraudulent operation exhibiting characteristics of a Ponzi scheme. The SEC stated that Tofro lacks regulatory approval, licensing, and legal authorization to solicit investments or operate in Nigeria’s capital market.

According to the SEC’s investigation, Tofro’s operations display typical indicators of fraudulent Ponzi schemes, including promises of unusually high returns, heavy reliance on a referral system to sustain payouts, and failure to honor withdrawal requests from subscribers. The commission urged Nigerians to verify any investment platform’s registration status through the SEC’s official website before investing and to exercise caution when approached with high-return offers from unlicensed platforms.

The warning comes as Nigeria’s SEC and the Economic and Financial Crimes Commission (EFCC) intensify efforts to combat Ponzi schemes. Under the newly signed Investment and Securities Act (ISA) 2025, Ponzi scheme promoters face penalties of up to 10 years’ imprisonment or a 40 million naira fine. The SEC emphasized that registration with other agencies, such as the Corporate Affairs Commission or the EFCC’s Special Control Unit Against Money Laundering, does not confer legitimacy on investment schemes.