SEC Engages NOA, Other Agencies To Tackle Ponzi Schemes

The Securities and Exchange Commission (SEC) on Tuesday disclosed that it is engaging the National Orientation Agency (NOA) as well as regulators of public agencies to curb the activities of illegal operators.

Ibrahim Boyi who was speaking on behalf of the executive commissioner corporate services of the SEC, Lamido Yuguda, said that these Ponzi schemes make promises of unrealistic profits have ruined the fortunes of many ambitious investors.

The DG of NOA's, Dr. Garba Abari said that the agency aim is to train at least 37,000 Nigerian fact checkers cutting across different spheres of national life.

He believes that this will widen the borders of the debate around the issue of fake news and advising people to desist from such unregulated investment schemes.

Lamido Yuguda, made this revelation during the recently launched National Fact-Checking Course organized by the NOA in Abuja.

He added that unlicensed Fund Managers, often known as Ponzi Schemes, have continued to flourish in Nigeria's investment climate, defrauding millions of individuals with unrealistic returns on investments.

According to him: “Such Schemes with all the illegality and promises of unrealistic returns have burnt the fortunes of many ambitious investors, from Yuan Dong Ponzi to Galaxy Transport, Famzhi Interbiz Limited, Cowlane and Durell, and the infamous Mavrodi Mundial Movement (MMM).

"The upsurge of these Schemes has undermined the reputation of the capital market and dampened investors’ confidence, among other things.

"This has created a considerable challenge to the growth of our market, and the Commission is striving to change the narrative by instilling a fair, transparent, and orderly market”.

While the SEC, along with other financial authorities, works to combat fake news and Ponzi schemes, Yuguda believes investors have an important role to play.

“Investors are advised to always confirm if the investment product, scheme, or company is registered with the SEC before investing.

"This could be done through our website: www.sec.gov.ng or via email to [email protected]; or from other regulatory authorities.

“Investments enable growth in wealth, thus while encouraging more retail investments, we urge you to invest in investment classes and products approved by the SEC, which can be confirmed through the channels provided above”, he stated.

He, therefore, reassured the commission's unwavering support, involvement, and partnership in fostering sustainable market and national progress.