SEC flags PWAN MAX as likely Ponzi Scheme, warns Nigerians

The Securities and Exchange Commission (SEC) has warned Nigerians against investing in Property World Africa Network (PWAN), through its PWAN MAX platform, describing the company’s operations as characteristic of a fraudulent Ponzi scheme.

It revealed this in an advisory informing Nigerians that PWAN/PWAN MAX is not registered to operate in any capacity within the Nigerian capital market or to solicit investments from the public.

It noted that the company operates as a real estate investment company and has been collecting funds from the public for investment purposes through its PWAN MAX platform.

“Investigations have revealed that PWAN’s operations exhibit the typical indicators of a fraudulent Ponzi scheme, including the promise of unusually high returns and failure to honour withdrawal requests from subscribers. Accordingly, the public is strongly advised to be wary about investing with PWAN/PWAN MAX, as any person who places such investment with these entities does so at his/her own risk,” the SEC stated.

The commission further urged Nigerians to verify the registration status of investment platforms via its portal: www.sec.gov.ng/cmos before engaging in any transactions.

The website of a company with the name PWAN claimed it has been in existence since 2012. “PWAN is an acronym for ‘Property World Africa Network (PWAN) and we exist to make home ownership dream a reality for all in Nigeria, Africa and beyond. Pwan Max is a real estate marketing, investment, management and development company with a drive to providing choice classic serene, luxury homes within workable budget for our clients,” a part of the website reads.

A review by BusinessDay showed that PWAN MAX offered investors returns of up to 30 percent annually on land deals. For example, buyers were told that a plot of land purchased for N25 million could be resold for N32.5 million within a year.

Read also: Tofro is a Ponzi scheme, says SEC

SEC’s warning comes in the wake of the collapse of another investment platform, CBEX, in which nearly 600,000 Nigerians were reportedly involved. While initial reports suggest losses of up to ₦1.2 trillion, the actual figure is believed to be lower. The commission has since declared CBEX illegal, and the Economic and Financial Crimes Commission (EFCC) has launched an investigation into the scheme.

Meanwhile, Ponzi schemes are now illegal under the newly enacted Investments and Securities Act (ISA 2025), signed into law by President Bola Tinubu. According to the Director General of SEC, Emomotimi Agama, operators of Ponzi schemes in Nigeria now face a 10-year jail term and fines of N40 million under the new law.