On January 26, 2025, the Nigerian Securities and Exchange Commission (SEC) warned the public against investing in Risevest and Stecs. The warning cited that neither entity is registered or authorised to operate in Nigeria’s capital market.
However, Risevest has responded to these allegations, claiming that it is legally registered to operate under the Cooperative Society Laws of Lagos State.
Read also: Nigerian fintech giant Risevest enters Kenyan market
The SEC’s warning highlighted that Risevest and Stecs are engaged in unapproved investment schemes targeting unsuspecting individuals. The Commission emphasised that investing with unregistered entities poses fraud risks and potential financial losses.
Despite this, Risevest maintains that its operations comply with regulatory guidelines and are supported by licensed partners such as Meristem Trustees Limited and Chaka Technologies Limited.
Response and legal standing
Risevest has countered the SEC’s allegations by stating that its cooperative activities are registered under the Cooperative laws of Lagos State, with registration no. 17080.
The company explained that its Nigerian operations are supported by SEC-licensed entities, enabling it to manage and invest users’ funds in local and global markets.
Risevest has also contacted the SEC to clarify the concerns raised in the warning and assured its users that all services are operating as usual.
In a statement, Risevest emphasised, “We have always operated in line with guidelines established by regulators to safeguard consumers.” The company said it was committed to delivering investment opportunities safely and competently.
Read also: Risevest acquires fintech company Hisa to enter Kenya
Meanwhile, the SEC continues to caution the public against engaging with unregistered entities, urging investors to verify the registration status of any company offering investment opportunities through official channels.
The SEC’s warning follows a history of regulatory scrutiny. In August 2021, the Central Bank of Nigeria (CBN) froze accounts linked to several fintech firms, including Rise Vest, due to investigations into alleged illegal foreign exchange transactions.
Although these restrictions were lifted in July 2023, the SEC’s latest advisory underscores ongoing scrutiny of financial platforms operating in Nigeria. Risevest’s radio, billboard, and social media promotions have been recognised despite the SEC’s worries about its capital market credibility.
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