SEC flags unregistered investment channel as refinery IPO targets

The Securities and Exchange Commission (SEC) has warned Nigerians against investing through an unauthorised online platform seeking to provide access to the N2.15 trillion Dangote Petroleum Refinery initial public offering (IPO), raising fresh concerns over investor protection as the landmark share sale draws retail participation.

In a public notice dated October 9 and published on Saturday, the commission said WayvePay was not registered to solicit investments from the public or conduct capital-market activities in Nigeria, warning that transactions through the platform could expose investors to fraud and financial losses.

The warning followed an October 6 newspaper advertisement in which WayvePay, described as the digital banking platform of Wayve Microfinance Bank, announced that it was making the refinery’s public offer available to its customers.

The SEC urged prospective investors to avoid transactions involving WayvePay or its representatives in relation to capital-market investments, stressing that registration and authorisation are essential safeguards when dealing with investment platforms.

“The Commission hereby informs the public that WAYVEPAY is not registered by the Commission to solicit investments from the public or operate in any capacity within the Nigerian capital market,” the regulator stated.

It advised investors to verify the registration status of companies and platforms through its official verification portals before transferring funds or providing personal and financial information.

The warning comes as the refinery’s IPO seeks to raise about N2.15 trillion through the sale of 4.1 billion ordinary shares at N525 each. The offer opened on September 14 and is scheduled to close on October 13, with a minimum subscription of 10 shares costing N5,250.

The transaction has generated significant interest because of its scale and the relatively low entry threshold, which is intended to broaden participation in the ownership of one of Nigeria’s largest industrial assets.

The offer is being distributed through approved channels spanning banks, fintech companies, mobile-money operators and the Nigerian Exchange’s NGX Invest platform. However, the growing number of digital entry points also makes it important for investors to distinguish between a platform that offers financial services and one specifically authorised to handle securities subscriptions.

The SEC had warned investors at the opening of the offer to use only officially designated receiving agents and approved subscription channels. It also cautioned against unsolicited calls, WhatsApp messages, social media advertisements and other communications promising guaranteed allotments or preferential access to shares.

For Nigeria’s capital market, the issue extends beyond a single platform. Wider digital access can help mobilise household savings into productive businesses, but confidence could suffer if investors lose money through channels that lack the required regulatory approval.

The commission has continued to strengthen oversight of digital investment activity, urging the public to verify operators before committing funds. Its latest notice reinforces the distinction between expanding access to investments and allowing unregistered entities to solicit money from the public.

With the refinery IPO targeting a broad investor base, the regulator’s warning places renewed emphasis on due diligence. Investors must confirm that their chosen subscription channel is authorised for the offer and understand the terms and risks of the investment before paying.

The success of efforts to deepen retail participation will depend not only on making shares easier to purchase, but also on ensuring that investors can enter the market through trusted, properly regulated channels.