On May 5, 2025, Nigeria’s Securities and Exchange Commission (SEC) officially warned the public that Property World Africa Network (PWAN) and its investment arm, PWAN MAX, exhibit the hallmarks of a fraudulent Ponzi scheme. The regulator’s public notice underscores the urgent need for due diligence by prospective investors in the country’s capital market.
In its notice, the SEC made two critical declarations:
Unregistered Status: PWAN/PWAN MAX are not registered with the Commission to solicit funds or operate in any capacity within the Nigerian capital market.
Ponzi Indicators: Investigations revealed promises of unusually high returns coupled with persistent failures to honor withdrawal requests classic red flags of Ponzi-style operations.
1. Excessive Return Guarantees: Marketing materials touted double-digit annual yields—far above industry norms.
2. Withdrawal Delays: Numerous subscribers reported significant delays or outright refusal when attempting to redeem their investments.
3. Opaque Business Model: Despite positioning itself as a real-estate investment firm, PWAN MAX provided little verifiable information about underlying property assets or transaction records.
The SEC strongly advised that anyone placing funds with PWAN/PWAN MAX does so “at his/her own risk.” To protect their capital, investors are urged to:
Verify Registration: Confirm any platform’s status via the SEC’s Capital Market Operators Portal at www.sec.gov.ng/cmos.
Scrutinize Returns: Treat promises of abnormally high yields with skepticism.
Seek Transparency: Demand clear documentation on asset holdings and audited financials before investing.
This warning follows a series of high-profile collapses—most notably the CBEX platform in April 2025, which left hundreds of thousands of Nigerians facing losses exceeding ₦1 trillion. Under the newly enacted Investments and Securities Act (ISA 2025), the SEC now has broader powers to prosecute Ponzi promoters, including potential jail terms of up to 10 years and fines of ₦40 million.
The SEC’s May 5 advisory serves as a stark reminder that even seemingly legitimate investment opportunities can cloak high-risk schemes. As Nigeria’s capital market continues to evolve under tighter regulations, investor education and regulatory compliance remain the strongest defenses against financial fraud.
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