By John Umeh
The Securities and Exchange Commission (SEC) of Nigeria has issued a strong warning to the investing public against engaging with or investing in Zugacoin and Samzuga GPT, two digital assets linked to controversial self-styled cryptocurrency evangelist, Archbishop Sam Zuga.
In a statement released earlier this week, the SEC described both Zugacoin and Samzuga GPT as “unregistered and unregulated investment products” that fall outside the purview of Nigeria’s legal investment framework. The regulator noted that these digital tokens have not been approved or recognized by the Commission, and therefore pose serious risks to unsuspecting investors.
“The general public is hereby warned that any individual or organization dealing with the promoters of Zugacoin or Samzuga GPT does so at their own risk,” the SEC stated emphatically. “These schemes do not comply with Nigeria’s capital market regulations and have not been registered by the Commission as required by law.”
Zugacoin, launched in 2020 by Sam Zuga, was touted as Africa’s first cryptocurrency with the potential to eradicate poverty. It promised investors huge returns and widespread adoption as a digital means of exchange. Similarly, Samzuga GPT was introduced as a crypto utility token that would revolutionize online payments, education, and philanthropy. However, both projects have faced growing skepticism over lack of transparency, poor technological backing, and exaggerated profit claims.
Investor complaints have been piling up across the country, with many alleging that their funds have either been locked or drastically devalued after investing in the platforms. Critics have also accused the promoters of leveraging religious influence and public charisma to lure vulnerable Nigerians, particularly in rural and semi-urban areas.
The SEC’s warning is part of a broader crackdown on unlicensed financial schemes operating under the guise of cryptocurrency and blockchain innovation. The Commission reiterated its commitment to protecting investors and preserving the integrity of Nigeria’s capital markets by closely monitoring suspicious platforms and taking enforcement action where necessary.
Financial analysts welcomed the move, noting that many Nigerians have been falling prey to elaborate scams disguised as legitimate fintech innovations. “The hype around crypto has created fertile ground for fraud,” said financial analyst Bukola Adedeji. “People must understand that not every digital coin is credible or legal.”
The Central Bank of Nigeria (CBN) has also previously cautioned against the use of unregulated cryptocurrencies, citing risks related to money laundering, terrorism financing, and consumer protection. The recent spotlight on Zugacoin and Samzuga GPT signals a renewed regulatory push to rein in the growing wave of crypto-related fraud.
As the warning circulates, the SEC advises investors to conduct thorough due diligence and consult its official website for a list of registered investment products and licensed operators. Nigerians are urged to be wary of “get-rich-quick” schemes that promise unrealistic returns, especially those lacking formal regulatory approval.
For now, the fate of Zugacoin and Samzuga GPT remains uncertain, but the SEC’s cautionary stance is clear: avoid unregulated crypto assets or risk financial loss.
