The Securities and Exchange Commission (SEC) has ramped up its fight against ponzi schemes in Nigeria, vowing to take decisive action against illegal fund operators while educating the public to prevent further incidences of collapse of illegal investment schemes.
At an awareness campaign held at the Dei-Dei Building Materials Market in Abuja, the SEC emphasized its commitment to saturating public spaces with information about illegal investment schemes before enforcing the law on perpetrators.
Speaking at the event, SEC’s Executive Commissioner Legal and Enforcement, Ms Frana Chukwuogor, stated: “We are here to spend time with people having realised that the issue of Ponzi schemes menace is affecting and spreading all over the place and they are deceiving and collecting people’s money especially from traders in the market.”
She added that the Commission deemed it crucial to visit Dei-Dei building material market to sensitize traders, empowering them to make informed decisions when approached with investment requests.
Chukwuogor explained that the campaign is a proactive step to combat the surge in fraudulent investment schemes in Nigeria, aligning with the Commission’s broader strategy to educate the public about Ponzi scheme risks and unregistered investment platforms before enforcing regulatory action.
She explained that too many Nigerians especially those at the grassroots fall victim to ponzi schemes due to lack of information or false promises of quick, unrealistic returns, emphasizing that many of these schemes are not registered or regulated by the SEC, making them dangerous and illegal.
“We have seen people lose their life savings, their businesses, and their peace of mind. That is why we are taking this message to the markets, motor parks, online platforms anywhere Nigerians are making financial decisions. Prevention through education is our first line of defense,” she added.
Speaking, the Head of Enforcement Department, Securities and Exchange Commission, Mr. Abdusalam Sa’ad Khalid, warned that while education is the first step, it will not hesitate to prosecute illegal operators who refuse to cease their fraudulent activities.
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