Real estate firm PWAN Group has responded to a recent advisory from the Securities and Exchange Commission of Nigeria, denying claims that its operations resemble a Ponzi scheme. The SEC had warned the public against engaging with PWAN and its affiliate, PWAN Max, stating that the companies are not registered to solicit investments and that their practices exhibit features of fraudulent schemes.
In a strongly worded statement released on Thursday, PWAN said the SEC’s conclusions were “inaccurate and misleading.” The company insisted its real estate buy-back initiative is neither speculative nor an investment offering under the jurisdiction of the capital market regulator. Instead, PWAN described its model as an “asset-backed commercial arrangement based on direct agreements with clients.”
The SEC had earlier flagged PWAN’s operations in a notice published on its official website. According to the commission, neither PWAN nor PWAN Max holds the necessary authorisation to operate in the capital market or raise funds from the investing public. It claimed that aspects of their business structure mirrored the core elements of a Ponzi scheme.
PWAN, however, rejected the classification, stating its transactions are not based on pooled resources, exaggerated returns, or continuous inflows—hallmarks of fraudulent financial schemes. The company said it had obtained legal advice confirming that its business model does not currently fall within any category regulated by the SEC.
The statement further outlined that the firm’s operations span over 1,000 estate projects in Nigeria, each supported by verifiable and registered property. “For over 12 years, PWAN has operated with integrity and transparency,” the company said, reinforcing that its “shared prosperity” philosophy remains unchanged.
With over 10,000 employees and a network of more than one million independent sales representatives, PWAN emphasised its contribution to the economy and its readiness to adjust to any future regulatory guidelines. “Should the SEC provide a clear framework for this type of transaction, we will promptly align our operations accordingly,” it noted.
The company urged Nigerians to disregard what it called “misrepresentations,” encouraging the public to stay confident in its long-standing reputation. PWAN reiterated its willingness to collaborate with regulatory agencies, stating that it is a “law-abiding corporate entity” committed to ethical practices.
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