We will eradicate Ponzi schemes in Nigeria- SEC vows

The Federal Government has vowed to collaborate with relevant government agencies and stakeholders to curb the activities of ponzi schemes in the country.

The statement was made by the  Securities and Exchange Commission (SEC) on Thursday during  an Investor Education Programme for staff of the Federal Road Safety Corps which held in Abuja, recently.

Speaking during the programme, the Executive Commissioner Operations, Securities and Exchange Commission, Mr. Dayo Obisan, during said  such unscrupulous schemes pose as operators in the capital market to defraud investors of their money promising mouth-watering returns on investments.

Represented by Director Market Development Department, Nestor Ikeagu, Obisan lamented that the development hQas made it difficult for investors to differentiate between genuine and false investment opportunities.

“The activities of these ponzi schemes promoters have posed a huge challenge to the Commission.

In combating them, we are working in collaboration with other agencies to nip their activities in the bud.

Also, the Commission is working tirelessly to ensure investors are aware of these nefarious activities through investor education programmes. We urge the FRSC to partner with us in the fight against ponzi schemes by reporting to the SEC anytime such activities are noticed”, he said.

The SEC Executive Commissioner expressed hope that the programme will give participants an overview of the capital market and the opportunity to learn how to invest in the Nigerian capital market including Collective Investment Schemes being managed by professionals in addition to exposing participants to the activities of ponzi schemes and how to identify them.

He disclosed that the SEC has a dual mandate to regulate and develop the Nigerian capital market that is fair and orderly; and engenders investor confidence, adding that a key aspect of its market development role is enlightenment and investor education.

In his remarks, Acting Corps Marshal of the FRSC, Mr. Dauda Biu, restated the importance of officers of the Corps to be financially literate.

Represented by Corps Commander, Anume Osuamkpe, Biu said Nigerians would only be able to avoid fraudulent investment schemes if they have the requisite knowledge of investing in the nation’s capital market.

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