Nigeria’s Securities and Exchange Commission (SEC) has described the Ponzi schemes as a “cancer” bedeviling effective operations of the capital market, News Agency of Nigeria (NAN) reported, citing Director-General Lamido Yuguda.
The SEC had been fighting a “serious war” against Ponzi schemes where people without licenses extort money from unsuspected victims, he said, adding that the commission has been working with other agencies to reduce access of Ponzi schemes to advertising platforms.
“We have been saying that people should only deal with registered operators that have the registration of the commission. We have done a lot of sensitisation to discourage people from patronising Ponzi schemes, but unfortunately, a lot of people still patronise them.”
The official said that cases had been reported to them, with enforcement and police units working on many to try and resolve them.
He advised that it was not difficult to recognise a Ponzi scheme, noting, “When a return is too good to be true, desist from it.”
The official said that the SEC is collaborating with the Economic and Financial Crimes Commission to fight money laundering and Ponzi schemes.
Earlier this month, state-owned Nigeria Deposit Insurance Corporation (NDIC) advised citizens to beware of Ponzi schemes operating under the guise of financial institutions.
“There are a lot of Ponzi schemes across the country, especially in local places. They trick people into putting money in their fraudulent…
