SEC Raises Red Flag on Silverkuun Scheme, Warns Nigerians Against Unlicensed Investment Offers
The Securities and Exchange Commission (SEC) has issued a firm warning to the Nigerian public against engaging with Silverkuun Investment Cooperative Society/Silverkuun Limited, describing the outfit as an unregistered and unauthorized entity operating outside the confines of Nigeria’s capital market regulatory framework.
In a circular released from its headquarters in Abuja on Wednesday, the Commission cautioned that Silverkuun was neither licensed as an investment adviser nor a fund manager, despite presenting itself to the public as such.
“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 SEC stated.
The alert comes amid a growing wave of unregulated investment schemes across the country—many of which have been likened to Ponzi or pyramid schemes—luring unsuspecting investors with promises of outsized and often unrealistic returns.
The Risk Landscape: A Cautionary Tale for Retail Investors
The SEC emphasized that engaging with unregistered entities such as Silverkuun exposes investors to serious financial risks, including fraud, insolvency, and total loss of capital.
This warning is part of a broader investor protection campaign by the Commission to sanitize the capital market ecosystem and deepen public awareness of the dangers of operating outside regulated structures.
“The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities via the Commission’s dedicated portal (www.sec.gov.ng/cmos),” the statement read.
The Commission also reaffirmed its zero-tolerance policy toward regulatory infractions. According to Dr. Emomotimi Agama, the newly appointed Director-General of the SEC, the regulator is prepared to invoke the full weight of the law.
“We will shut down their operations and the promoters will be made to face the full weight of the law,” Agama warned.
BRANDECONOMY Analysis: The Persistence of Shadow Investments
Silverkuun is the latest in a long list of dubious investment outfits exploiting financial illiteracy, poor oversight, and high demand for alternative income streams in Nigeria’s informal investment space.
Despite efforts by the SEC, the Central Bank, and EFCC to crack down on such entities, Ponzi-style operations continue to flourish, especially on social media and in rural cooperative networks, where regulation is less visible and trust is easily manipulated.
This latest case underscores a critical policy challenge: closing the gap between formal financial products and retail investor expectations, particularly as inflation and economic uncertainty push many toward high-risk schemes that appear to offer quick returns.
What Investors Should Know
- Silverkuun is not listed in the SEC’s database of registered Capital Market Operators (CMOs).
- No licensed entity is permitted to collect funds or manage investments without SEC approval.
- Due diligence is non-negotiable: All investment opportunities should be verified through official regulatory platforms.
- Investment schemes promising fixed high returns with little risk are classic red flags.
BRANDECONOMY Insight
📉 Silverkuun’s exposure by the SEC is a reminder that in finance, if it sounds too good to be true, it usually is. Regulatory vigilance is rising, but so too is investor desperation. Closing that gap will require more than warnings—it demands innovation in low-risk, accessible financial products for the masses.
For updates on capital market regulation, investor education, and verified investment opportunities in Nigeria and across Africa, stay with BRANDECONOMY.
