By Nkiruka Nnorom

PWAN Group has debunked the allegations against it by the Securities and Exchange Commission, SEC, which suggest that the company’s real estate buy-back transactions bear the characteristics of a ponzi scheme, saying that its model is asset-backed, tangible and contract-based with each transaction tied to a physical asset.

SEC had issued a public warning on the activities of the company, accusing it of soliciting funds under the pretence of being a legitimate real estate investment firm.

Coming amidst the heightened concerns of the activities of unregulated firms targeting unsuspecting investors, SEC warned the investing public to stear clear of the company, stressing that it was neither registered with the Commission nor authorised to operate in any capacity within the Nigerian capital market.

But reacting to the allegations, the Group maintained that its transactions are backed by verifiable, registered real estate, and urged the public to disregard the “misrepresentation” and remain confident in its commitment to ethical business and investor protection.

In a statement made available to Saturday Vanguard, PWAN Group emphasised its 12-year reputation for trust, transparency and innovation with a business philosophy of shared prosperity, saying that the buy-back transaction was a way of sharing value appreciation of the over 1,000 estate projects across the country with its clients.

“The attention of PWAN Group has been drawn to a recent press release by the Securities and Exchange Commission (SEC) of Nigeria, which suggests that our real estate buy-back transactions may bear the characteristics of a Ponzi scheme. We find this characterization inaccurate and misleading, and we feel compelled to provide clarity for the benefit of our stakeholders and the general public.

“PWAN Group’s real estate buy-back transactions is a forward-thinking, asset-backed initiative designed to give subscribers the opportunity to benefit from the capital appreciation of the real estate they acquire through us.

“This model is neither speculative nor abstract; it is a tangible, contract-based agreement where each transaction is directly tied to a physical property.

“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.

“It is a private commercial arrangement between PWAN Group and individual clients who have chosen to participate in the long-term value creation of our real estate portfolio.

“Every investment under this scheme is backed by verifiable, registered real estate, thereby significantly reducing risk. There is no pooling of funds, no promises of unrealistic returns, and no dependence on continuous inflows to sustain payouts —hallmarks of Ponzi operations that are entirely absent in our model,” the company said.

The company expressed its willingness to cooperate with the regulatory authorities and align any future framework or classification.

“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,” it remarked.