By Adeleye Kunle
Mr. Lamido Yuguda, Chairman of the Securities and Exchange Commission, has stated that the Commission will collaborate with and engage relevant agencies to eliminate all Ponzi schemes in the capital market.
Yuguda, who spoke in Abuja about the dangers of ponzi schemes in Nigeria, advised investors to always check with the SEC for registered and authorised operators in the Nigerian financial market.
“We have their list on the SEC website, and we have always said that if you go to an operator or an operator approaches you, you must confirm that he is a licensed operator with the SEC,” he explained. We have done a lot of sensitization in the form of seminars and webinars in order to discourage people from participating in ponzi schemes.
“Unfortunately, many people continue to patronize the schemes; we have had cases reported to us; our enforcement department and the police unit have been on many of these reported cases trying to resolve them.”
According to him, identifying a ponzi scheme is not difficult because they usually promise unreasonably high returns in order to entice people.
“There are people who think they can be among the first people to go in and probably get out before it collapses, but you may be taking a huge risk because you don’t know if you are the first, the 1000th, and it could be your own money that gets trapped,” he added. It is critical for investors to recognize the warning signs of a Ponzi scheme and to notify the commission if they require clarification.”
The SEC DG stated that the Commission has been working with other government agencies to reduce ponzi scheme access to advertising platforms, print media, or electronic media such as radio and television.
“These collaborations are critical because Ponzi schemes are cancers to the capital market; a lot of money has been lost, and it is unacceptable for people to continue to lose money in their investments.”
“In terms of the Commission’s and law enforcement’s synergies in combating Ponzi schemes, I can say that there is very good synergy and harmony between the SEC and the law enforcement agencies.” It is worth noting that the SEC has a detachment of the Nigerian Police working directly with the SEC on capital market matters, including Ponzi schemes, and we have a good working relationship with the Nigerian Financial Intelligence Unit, the EFCC, particularly in the fight against money laundering and Ponzi schemes.”
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