The Securities and Exchange Commission (SEC) has officially flagged Glorious Wealth Fund (GWF) as a Ponzi Scheme. This action was taken after numerous reports surfaced claiming that investors are unable to withdraw their earnings following deposits made on the online investment platform.
In a public disclosure issued on Thursday, the SEC highlighted that Glorious Wealth Fund had been presenting itself as a legitimate investment platform, offering services related to Nigerian stocks and various other financial instruments.
GWF had previously asserted that it operated under the supervision of the SEC and was also licensed by the Central Bank of Nigeria (CBN). A statement from the company’s official platform read: “Glorious Wealth Fund is a government-endorsed financial innovation initiative, supervised by the Securities and Exchange Commission of Nigeria (SEC Nigeria) and guided by the Central Bank of Nigeria (CBN).”

However, the capital market regulator has now alerted the Nigerian public that the platform operates as a Ponzi Scheme. The SEC has stated that any claims made by GWF regarding its supervision, licensing, or approval by the SEC are false, misleading, and fraudulent.
The commission's statement further elaborated: “The Commission hereby informs the public that the Glorious Wealth Fund (GWF) is not registered or licensed by the Securities and Exchange Commission (SEC) Nigeria to carry out any form of capital market activity in the Nigerian capital market.”
During its period of operation, the platform has exhibited characteristics indicative of a Ponzi Scheme. According to the SEC, investors have lodged complaints detailing their inability to retrieve their funds after making deposits.
The commission emphasized that actions such as the refusal to disburse returns on investment are typical features of illegal investment schemes designed to defraud unsuspecting Nigerians.
“The public is advised to refrain from dealing with GWF, as any person who engages with the entity or its representatives does so at his/her own risk,” the SEC cautioned.

Nigerians are encouraged to verify the registration status of any company offering investment opportunities through the SEC's dedicated portal: www.sec.gov.ng/cmos.
Nigerians Suffer Significant Financial Losses to Ponzi Schemes
In a recent development, the SEC's Head of Fintech and Innovation Department, AbdulRasheed Dan-Abu, revealed that Nigerians have lost an estimated N300.2 billion to Ponzi schemes in recent years. This figure excludes losses from CBEX and encompasses fraudulent investment schemes such as MMM, Famzhi Interbiz Ltd, and MBA Forex and Capital Investment.
A detailed breakdown of the N300.2 billion indicates that MMM Nigeria accounted for approximately N18 billion of the total losses. The MBA Forex and Capital Investment Ltd scheme amassed around N213 billion from Nigerians before its collapse, while Nospecto Oil and Gas defrauded investors of roughly N45 billion.
Other Ponzi schemes identified, including Chinmark Group, Ovaioza Farm Produce Storage Business, and Famzhi Interbiz Ltd, collectively cost Nigerians over N24 billion.

This situation arises in the context of several red flags previously raised by the SEC concerning Ponzi Schemes. Some of the illegal investment platforms highlighted by the commission include Pocket Option, which was marketed as an online investment adviser/fund manager, and Forsman & Bodenfors LTD (F&B), which falsely presented itself as the Nigerian arm of a Swedish advertising firm.
Additional platforms flagged include GVEST, Tofro (a crypto trading operation), and the widely known Crypto Bridge Exchange (CBEX), which resulted in billions of Naira in losses for many Nigerians. The commission also previously flagged Sapphire Scents Limited for operating as an Investment Adviser/Fund Manager and promoting an unregistered investment scheme.

