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The Securities and Exchange Commission (SEC) has intensified its efforts to combat Ponzi schemes in Nigeria, promising to take strong action against unlawful fund operators while also educating the public to avoid further exploitation.
During an awareness event held at the Dei-Dei Building Materials Market in Abuja, the SEC reiterated its dedication to spreading information about illicit investment schemes before taking legal action against offenders.
The Executive Commissioner for Legal and Enforcement at the SEC, Ms. Frana Chukwuogor, issued a caution about the hazards of engaging with illegal fund operators, often referred to as Ponzi schemes.
She stated, “We want to saturate, saturation is my favorite word, it means that there will be no room to do anything more,” highlighting that the Ponzi schemes issue is pervasive and deceiving many, particularly traders.
Chukwuogor noted the importance of visiting the Dei-Dei market to inform traders and empower them to make educated choices when approached with investment offers.
She described the campaign as a proactive measure against the rise of fraudulent investment schemes in Nigeria, which aligns with the SEC's broader goal of educating the public about the risks associated with Ponzi schemes and unregistered investment platforms before taking regulatory measures.
“Our approach is straightforward but resolute,” Chukwuogor remarked. “We are not merely regulators who issue threats without actions. We focus on engaging, informing, and empowering Nigerians before applying the law. We will educate before enforcing.”
She pointed out that numerous Nigerians, especially those at the grassroots level, become victims of Ponzi schemes due to a lack of information or the allure of quick, unrealistic returns, stressing that many of these schemes are unregistered and unregulated by the SEC, rendering them hazardous and illegal.
“We have witnessed individuals losing their life savings, businesses, and peace of mind.
This is why we are bringing this message to markets, motor parks, online platforms wherever Nigerians are making financial decisions. Education is our primary defense against these schemes,” she added.
At the Dei Dei Market, the SEC team distributed flyers in several languages, directly interacted with traders, and answered questions from those who had either encountered or fallen prey to illegal investment operators. The engagement was characterized by transparency, personal narratives, and a desire to learn how to identify legitimate investment platforms.
The Head of the Enforcement Department at the SEC, Abdusalam Sa’ad Khalid, cautioned that while education is the first stride, the commission will not hesitate to prosecute illegal operators who continue their fraudulent activities.
He urged the public to verify any investment opportunities through official channels and report any suspicious activities via the SEC helpline.
The visit to Dei Dei Market marks the third in a series of visits to markets in Abuja as part of the SEC’s national investor awareness initiative, aimed at enhancing financial literacy, fostering public confidence in the capital market, and fortifying investor protection in Nigeria.
