Ponzi Scheme: SEC Launches Sensitisation Campaign

In a bid to prevent more Nigerians from falling prey to Ponzi schemes, the Securities and Exchange Commission (SEC) has launched a sensitisation campaign.

Led by its director-general, Dr. Emomotimi Agama, the SEC team distributed informational flyers and engaged traders on the risks associated with investing in unregulated schemes in Abuja.

The team emphasised the importance of verifying any investment opportunity with the Commission before committing funds.

Speaking, Agama explained that the initiative was part of the SEC’s ongoing efforts to protect Nigerians from fraudulent investment platforms.

He noted that Nigerians have collectively lost over $1.3 trillion to the CBEX Ponzi scheme, underscoring the urgent need for greater awareness.

“It is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC,” Agama stated.

He said, “we are happy that we have come out here to inform them and more importantly, they are now being enlightened to the effect that if it is too good to be true then it is not good, certainly it is not true.”

He expressed the determination of the Commission to stamp out Ponzi schemes and all other illegal investment platforms from Nigeria.

“President Bola Tinubu has signed into law the new ISA 2025. Now, anyone involved in Ponzi schemes, whether influencers, bloggers, accomplices, or anyone else faces a N20 million fine and up to 10 years in jail.

“We will not stop here. We will go to every market we can reach; and every nook and cranny of this country. We will visit churches, mosques, hospitals, even the navy. We want everyone to hear this message.”

He further said that “the SEC of today is reaching out like never before. We will continue to do this, but we need your help to spread the information. Together, we will be better off.”

The executive commissioner Legal and Enforcement of the SEC,  Frana Chukwuogor, urged the traders to shun schemes that offer unreasonably high returns as they are only out to fleece unsuspecting Nigerians.

“Ponzi schemes are illegal investment behaviors that build on nothing. We need to enlighten Nigerians about the dangers of Ponzi and we think going all out to enlighten women will make our job easier,” she stated.

She added that the Commission was in Wuse Market to help investors key into the resources available in the Commission to make them better protected, saying “we want to strengthen investors in their knowledge and understanding of the capital market, we want people to invest, but they should verify with SEC first.”

Speaking during the sensitization campaign, traders took turns to narrate their experiences with the illegal CBEX platform.