Photo caption: PWAN Group logo
The management of PWAN Group has denied allegations by the Securities and Exchange Commission that its real estate buy-back transactions bear the characteristics of a Ponzi scheme.
In a statement made available to our correspondent by the company on Thursday, PWAN described the SEC’s position as “inaccurate and misleading,” stressing that its initiative is a transparent, asset-backed commercial arrangement, not a capital market product or an investment scheme that falls under the purview of the Commission.
“The attention of PWAN Group has been drawn to a recent press release by the SEC of Nigeria, which suggests that our Real Estate Buy-Back transactions may bear the characteristics of a Ponzi scheme,” the company said. “We find this characterization inaccurate and misleading, and we feel compelled to provide clarity for the benefit of our stakeholders and the general public.”
In an official notice on the SEC website on Tuesday, the commission issued a warning to the public against investing in the activities of Property World Africa Network and its affiliate, PWAN Max, describing their operations as characteristic of a fraudulent Ponzi scheme.
The commission stated that PWAN and PWAN Max are not registered to operate within the Nigerian capital market or to solicit investments from the public.
However, PWAN Group explained that the buy-back model is based on direct agreements with individual clients tied to specific real estate assets. According to the firm, the transactions are not speculative and do not rely on pooling of funds, unrealistic returns, or continuous inflows—elements typically associated with Ponzi schemes.
“This initiative does not constitute a capital market product and, based on legal counsel, does not currently fall under any defined regulatory category within SEC’s existing framework,” PWAN stated.
The real estate firm noted that over the last 12 years, it has maintained a reputation for integrity and transparency. It added that the scheme aligns with its business philosophy of “shared prosperity,” and is backed by verifiable, registered properties across more than 1,000 estate projects in Nigeria.
PWAN also noted that it employs over 10,000 staff and has more than one million independent sales executives nationwide.
While reaffirming its commitment to ethical business practices, PWAN said it is ready to comply with any future regulatory framework provided by the SEC that clearly defines its type of transaction.
“We remain a law-abiding corporate entity and are fully committed to cooperating with regulatory authorities. Should the SEC, now or in the future, provide a clear classification or registration framework for this type of transaction, we will promptly align our operations accordingly,” the statement added.
The company urged the public to disregard what it described as “misrepresentations” and to remain confident in its commitment to investor protection and sustainable wealth creation through real estate.
