On May 6, 2025, the Securities and Exchange Commission of Nigeria (SEC) issued a public warning over the activities of Property World Africa Network (PWAN) and its affiliate PWAN MAX, identifying multiple red flags indicative of a Ponzi scheme .




Unregistered operation: PWAN/PWAN MAX lack any registration with the SEC, meaning they have no legal authority to solicit public investments or operate within Nigeria’s capital market .


Ponzi-like characteristics: The SEC highlighted troubling operations including promises of unusually high returns and an inability to honour withdrawal requests hallmark traits of Ponzi schemes .


Risk warning to investors: The Commission stressed that anyone investing in PWAN/PWAN MAX does so “at his/her own risk,” urging prospective investors to verify registration via its portal before committing funds .




The warning against PWAN/PWAN MAX is part of a broader regulatory enforcement against unregistered and fraudulent investment ventures in Nigeria. Following the recent collapse of schemes such as CBEX, which reportedly defrauded over 600,000 Nigerians, the SEC has intensified investor protection efforts .


With the enactment of the Investments and Securities Act (ISA) 2025, the SEC now wields enhanced enforcement powers, including penal provisions of up to 10 years imprisonment and ₦40 million fines for promoters of Ponzi schemes.



On May 9, 2025, PWAN Group publicly rejected the SEC’s allegations, labeling them “inaccurate and misleading.” The company defended its real-estate buy-back model as transparent and asset-backed, asserting it neither pools transactions nor relies on ongoing investor inflows .


PWAN further emphasized its long-standing operational history, covering over 1,000 estate projects and involving more than 10,000 staff members nationwide. The firm also stated its readiness to comply with future SEC guidelines pertaining to similar transactions .


What Investors Should Know


Always verify: Confirm the registration status of any investment firm through the SEC’s CMOS portal before transferring funds .


Watch for warning signs: Be cautious of platforms offering guaranteed, high returns, frequent payout schedules, and opaque revenue-generating models common Ponzi indicators .


Regulatory backing is key: Only invest in entities duly registered and regulated under the SEC’s framework.


This developing situation underscores the SEC’s aggressive posture against financial scams and emphasizes the importance of robust due diligence in protecting personal investments.