- The Securities and Exchange Commission has revealed that N500 billion was lost to Ponzi schemes by Nigerians
- It warned Nigerians against investing in schemes that offer extraordinary returns and are not registered by the SEC
- According to the agency, Ponzi Schemes consist of over 70% of cases handled by the SEC and involve over N500 billion
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Securities and Exchange Commission (SEC) has revealed that Nigerians lost up to N500 billion to Ponzi schemes.
Photo Credit: SEC
Source: UGC
Executive Commissioner Reginald Karawusa of the SEC said this while responding to questions from the Senate committee on capital markets and Institutions during a courtesy visit to the Central Securities Clearing System (CSCS).
The agency warned citizens against investing in companies that offer irrational returns and are not registered with the agency, the Guardian reported.
Numerous illegal activities in market
Karawusa lamented the existence of numerous illegal activities in the market despite the commission’s attempts to tackle Ponzi scheme issues.
He claims that Ponzi schemes account for more than 70% of the cases handled by the SEC’s police and enforcement unit.
He revealed that the individuals behind these groups had raised over N500 billion from Nigerians.
According to Karawusa, the SEC has collaborated with other organisations and government authorities to limit Ponzi schemes’ access to different advertising platforms.
He noted:
“We have been fighting the Ponzi scheme; it is a problem that we recognise, and we are shutting these illegal outfits.
“We also join the advertising board to make sure that approvals are not given to people that would come to deceive the public.”
Lamido Yuguda, the SEC’s director general, stated that the agency has been warning the public about the rise in dishonest investment companies and has been waging a fierce struggle against Ponzi schemes.
SEC shuts down 13-year-old investment company
Legit.ng reported that the Securities and Exchange Commission (SEC) has sealed the premises of Ready Finance Investors Limited.
The commission said the decision was made due to the company’s involvement in illegal investment and other prohibited capital market activities.
According to the SEC, Ready Finance operates from Flat 5, AYA Memorial Plaza, Nkwere Street, Area 11, Garki, Abuja.
Source: Legit.ng
