On May 9, 2025, Property World Africa Network (PWAN) Group categorically denied the Securities and Exchange Commission’s (SEC) recent characterization of its real estate buy-back transactions as bearing “the characteristics of a Ponzi scheme.” In a statement to the press, PWAN described the SEC’s position as “inaccurate and misleading,” emphasizing that its initiative is a transparent, asset-backed commercial arrangement rather than a capital-market investment product .
The company’s response came on the heels of a public notice issued by the SEC on May 6, which warned the investing public against engaging with PWAN and its affiliate, PWAN Max, on grounds that they were not registered to solicit funds within Nigeria’s capital market. The regulator cited typical red flags of Ponzi operations—including promises of unusually high returns and a history of refusing withdrawal requests—as the basis for its warning .
PWAN Group countered these allegations by outlining the mechanics of its buy-back model. According to the firm, each transaction is governed by a direct agreement with individual clients and tied to specific, verifiable real estate assets. Unlike a Ponzi structure, PWAN insists there is no pooling of subscriber funds, no speculative returns promised, and no reliance on continuous cash inflows to meet obligations .
Highlighting its track record, PWAN noted that over the past 12 years it has completed more than 1,000 estate projects, employs upwards of 10,000 staff members, and works with over one million independent sales executives nationwide . The firm reaffirmed its commitment to ethical business practices and expressed readiness to comply swiftly with any future SEC framework that explicitly defines and regulates real estate buy-back transactions.
“We remain a law-abiding corporate entity and are fully committed to cooperating with regulatory authorities,” PWAN’s statement concluded. “Should the SEC provide a clear classification or registration framework for this type of transaction, we will promptly align our operations accordingly.”
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