Celebrities risk prosecution for promoting fraudulent investment schemes – EFCC, ICPC, FCCPC warns

Three federal agencies have warned Nigerian celebrities and social media influencers against promoting fraudulent products, investment schemes and deceptive services, threatening legal consequences for those who use their popularity to lure unsuspecting members of the public.

The Independent Corrupt Practices and Other Related Offences Commission (ICPC), Economic and Financial Crimes Commission (EFCC) and Federal Competition and Consumer Protection Commission (FCCPC) issued the warning at a joint stakeholder meeting in Abuja on Friday.

The agencies expressed concern that Nigerians had lost billions of naira through fraudulent businesses promoted by celebrities, musicians, actors and social media influencers whose endorsements often give questionable products and investment platforms an appearance of credibility.

Speaking at the meeting, FCCPC Executive Vice Chairman, Tunji Bello, said celebrities could no longer avoid responsibility by claiming ignorance when products and services they endorsed turned out to be fraudulent.

“If you promote a fraudulent product, you are liable. Your face, your voice, your influence were used to deceive people. You will be held accountable,” he said.

EFCC Chairman, Ola Olukoyede, who was represented at the meeting, said the commission had encountered cases involving skit makers, musicians and actors who promoted cryptocurrency scams and fake loan applications.

He warned that influencers who knowingly participate in promoting fraudulent activities could be treated as accomplices.

“We have seen cases where skit makers, musicians and actors promoted crypto scams and fake loan apps. Nigerians lost money because they trusted their favourite celebrity. That trust must not be abused,” he said.

The ICPC also cautioned that celebrity endorsements of fake products undermine consumer confidence and create opportunities for corrupt practices.

The latest warning comes amid growing concerns over the use of celebrity endorsements, social media advertising and digital impersonation to attract Nigerians to fraudulent investment platforms.

In April 2025, the Securities and Exchange Commission (SEC) warned celebrities, bloggers and social media influencers against promoting unregistered investment schemes following the collapse of the Crypto Bridge Exchange (CBEX), a digital investment platform accused of defrauding Nigerians.

The SEC said CBEX and its affiliates were never registered to operate as a digital asset exchange or solicit investments from the Nigerian public.

According to the commission, preliminary investigations showed that the platform used promotional activities to create a false impression of legitimacy and attract investors with promises of unusually high returns within a short period.

CBEX reportedly promised investors that their money would double within a month before subscribers began experiencing difficulties withdrawing their funds.

The SEC subsequently warned that promoters and operators of prohibited investment schemes could face prosecution under the Investments and Securities Act 2025.

Section 196 of the Act empowers the commission to shut down prohibited investment schemes and provides for a minimum fine of N20m, imprisonment of up to 10 years or both for promoters and operators convicted of running such schemes.

In a further public notice issued in May 2026, the SEC warned Nigerians against unregistered online investment platforms promoted through WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital channels.

The commission said only entities registered with it were authorised to promote investment services, provide investment advice or solicit funds from the public within the Nigerian capital market.

It advised investors to verify the registration status of investment platforms through its official portal before committing their money.

The problem has also extended beyond celebrities voluntarily endorsing products, with fraudsters increasingly deploying artificial intelligence to impersonate prominent Nigerians in advertisements for fake investment opportunities.