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Tag: Ponzi Schemes

  • How Nigerians can escape Ponzi schemes traps – NICA Registrar

    How Nigerians can escape Ponzi schemes traps – NICA Registrar

    Embracing the Nigerian Consumer Credit Corporation and the newly established National Credit Guarantee Company is a clear solution to escaping Ponzi schemes traps and building sustainable wealth.

    Prof. Chris Onalo, Registrar/Chief Executive Officer of the National Institute of Credit Administration (NICA), said this in Lagos State on Sunday.

    Prof. Onalo stressed that economic hardship and a pervasive sense of frustration are pushing many Nigerians into the trap of Ponzi schemes, leading to continuous financial losses.

    Onalo told NAN that in spite regulatory efforts, citizens continued to fall victim to these scams largely due to “ignorance of opportunities offered by the credit policies of President Bola Tinubu.”

    He asserted that a clear solution to escaping Ponzi schemes and building sustainable wealth  was embracing the Nigerian Consumer Credit Corporation and the newly established National Credit Guarantee Company (NCGC).

    He emphasised that the credit guarantee system was designed to “help absorb bankable risks and enhance financial inclusion,” particularly for Micro, Small, and Medium Enterprises (MSMEs).

    He highlighted that the NCGC aimed to resolve the perennial issue of small businesses collapsing due to lack of access to finance.

    “Most big global conglomerates started as family businesses which grew due to access to credit support’’, Onalo noted, illustrating the potential for MSMEs with proper financial backing.

    He explained that MSMEs lacking collateral could now be “assessed and assisted simultaneously by both banks and NCGC in the current credit guarantee initiative.”

    Onalo commended President Bola Tinubu for introducing the credit economy and establishing the NCGC, calling it a step toward “citizens’ well-being” and “MSMEs growth’’.

    He acknowledged the universal human desire for wealth, which fuelled desperation and vulnerability to illegitimate schemes

    “All humans have desires for money and wealth creation, hence the desperation of Nigerians to make money either legitimately or illegitimately, thereby falling for ponzi schemes,” he said.

    He stressed the urgent need for a national value reorientation to combat the “get rich quick syndrome” prevalent among Nigerians.

    Onalo urged the government to provide adequate funding to the National Orientation Agency for “practical continuous enlightenment campaigns” targeting communities, tertiary institutions, professional associations, and religious bodies.

    He added that the government could “augment that by introducing schemes and programmes that can give support gradually to the Nigerian people’’.

    For the NCGC to succeed, Onalo called for “transparency, collaboration, innovations and strict adherence to mandate’’.

    He emphasised the importance of “effective stakeholders engagement, public enlightenment, partnerships and transparency for NCGC to be able to effectively promote access to credit for MSMEs.”

    The NICA boss announced that the National Credit Guarantee Company would host a stakeholders’ Forum on July 28, 2025, in Lagos.

    The event, where Onalo will be a panelist, will discuss “Fostering Inclusive Growth Through Credit Guarantees for Youth-owned Businesses and MSMEs,” with key participants including lending institutions, regulators, and the business community.

  • SEC probes Ponzi scheme linked to FF Tiffany

    SEC probes Ponzi scheme linked to FF Tiffany

    The Securities and Exchange Commission (SEC) has revealed plans to commence investigation into the activities of an entity operating under FF Tiffany, allegedly running a fraudulent investment scheme that has defrauded citizens.

    A statement by SEC on Tuesday in Abuja said preliminary information revealed that the scheme, which promised investors unusually high and unrealistic returns, had resulted in the loss of several billions of naira.

    The SEC said it viewed the activity as a threat to investor confidence and the overall integrity of the financial system.

    The commission assured the public that it was working closely with law enforcement agencies and other relevant bodies to bring everyone involved in the unlawful operation to justice.

    According to SEC, those found culpable will be prosecuted in accordance with Investment and Securities Act (ISA) and regulatory provisions.

    SEC reiterated its earlier warnings to the general public to desist from engaging in Ponzi or unregistered investment schemes that promised guaranteed or exaggerated returns.

    ”These schemes are not registered with the SEC and do not offer investor protection under the law.

    “The commission is currently investigating 79 schemes and will make a statement on its findings at the conclusion of the investigation,” the SEC said.

    The commission encouraged investors to conduct due diligence and verify the registration status of any investment firm or product by visiting the SEC website or contacting the commission directly through official channels.

    SEC said it remained committed to its mandate of protecting investors, ensuring fair practices, and maintaining confidence in Nigeria’s capital market.

  • Senate investigates operations of ponzi schemes in Nigeria

    Senate investigates operations of ponzi schemes in Nigeria

    Senate has mandated its Committees to conduct a comprehensive investigations and public hearing on the operations of ponzi schemes in Nigeria and report back in four weeks.

    The committees are Capital Market, Banking, Insurance and Other Financial Institutions, Anti-Corruption and Financial Crimes and ICT and Cybercrime.

    This followed the adoption of a motion on “Investigative hearing into the operations of Ponzi Schemes in Nigeria, with particular reference to the recent Crypto Bullion Exchange (CBEX) incident” at plenary on Wednesday.

    The motion was sponsored by Sen. Abiru, Adetokunbo (APC-Lagos) and Sen.Osita Izunaso (APC-Imo).

    Adetokunbo, presenting the motion said that the economic well-being and financial security of Nigerian citizens were essential pillars of national stability and growth.

    He said that it was the duty of the government to protect the populace from exploitative, predatory and fraudulent financial practices and schemes that threaten their livelihoods.

    He expressed concerns on rapid proliferation and alarming rise of unregulated and fraudulent investment schemes commonly known as Ponzi or pyramid schemes.

    He listed such as MMM Nigeria in 2016, MBA Forex in 2020 that had repeatedly defrauded millions of Nigerians.

    This, he said was causing severe financial hardship and in some cases driving victims to depression, family breakdowns and even suicide.

    “The recent case of Crypto Bullion Exchange (CBEX), a digital investment platform which lured millions of Nigerians with the promise of outrageous returns, before suddenly collapse, resulted in investors losing more than N1.3 trillion making it one of the most devastating financial scams in the country’s history.”

    He said that the CBEX incident was not an isolated case, but part of an existing and growing pattern of unregulated and fraudulent schemes leveraging technology and social media to deceive the public.

    According to him, the schemes often employ tactics such as referral commissions, celebrity endorsements and fake testimonials to build credibility and drive recruitment.

    He said that it was worrisome that CBEX operated for an extended period without facing sanctions by either the Securities and Exchange Commission (SEC).

    He added that not even the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), or the Economic and Financial Crimes Commission (EFCC) sanctioned the operators of these ponzi schemes.

    Adetokunbo said that the growing sophistication of such fraudulent platforms, combined with high youth unemployment, widespread poverty, low levels of financial literacy and a lack of access to formal investment opportunities” make the Nigerian population increasingly vulnerable to such schemes”.

    According to him, Section 88(1) (a) and (b) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), empowers the National Assembly to conduct investigations into “any matter to which it has power to make laws.

    He also said that constitutional powers empowered the Senate to investigate failure of regulatory agencies to monitor and prevent the CBEX fraud and to propose necessary legislative or administrative reforms to forestall future occurrences.

    He said lack of coordinated oversight, real-time monitoring and strict enforcement by relevant agencies had created an enabling environment for such schemes to flourish

    He noted that this had eroded public trust in legitimate financial institutions and posed systemic risks to the economy.

    Adetokunbo said there was need for urgent public education to prevent further exploitation of unsuspecting citizens given increasing sophistication of Ponzi scheme operators and its devastating consequences of their actions.

    The motion, which was described as apt and germane, received overwhelming support from lawmakers such as senators Mohammed Monguno(APC-Borno),Adamu Alero (APC-Kebbi) Solomon Adeola (APC-Ogun) and Abdul Ningi (PDP-Bauchi) among others.

    President of the Senate, Godswill Akpabio said that the motion concerned all and that stringent measures and punishment should be put in place and meted to perpetrators of the schemes going forward.

    He also placed emphasis on the need to educate citizens to be weary of the ponzi schemes.

  • CBEX: SEC blows hot, vows to deal with promoters of Ponzi schemes

    CBEX: SEC blows hot, vows to deal with promoters of Ponzi schemes

    The Securities and Exchange Commission (SEC) has warned social media influencers and bloggers against promoting unregistered investment schemes.

    SEC’s Director-General, Dr Emomotimi Agama, gave the warning in a notice issued on Sunday in Abuja.

    He said the commission was working closely with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other relevant government agencies to investigate and prosecute violators.

    According to Agama, the recently enacted Investments and Securities Act (ISA) 2025 specifically targets promoters of unregistered investment schemes.

    He urged celebrities, influencers, and bloggers to avoid endorsing such ventures or face legal consequences.

    “The law also covers influencers and bloggers who promote fraudulent schemes, with clear penalties, including imprisonment,” Agama stated.

    “We are using this opportunity to warn such individuals to immediately desist from promoting unregistered entities.”

    He reiterated that the SEC had the capacity, expertise, and legal backing to combat Ponzi schemes and protect the investing public.

    “We have dealt with similar schemes in the past and will continue to do so, leveraging the powers of the ISA 2025 to safeguard investors and develop the capital market,” he added.

    Agama cited the recent collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion, as a wake-up call.

    He described CBEX’s promises of doubling investments within a month and its false claims of global partnerships as clear indicators of fraud.

    “The collapse of CBEX underscores the urgency of our crackdown. We are shutting down their operations, and the promoters will face the full weight of the law,” he said.

    He urged Nigerians to always verify the authenticity of any investment opportunity with the SEC before committing funds, cautioning that “if it sounds too good to be true, it probably is.”

    Agama reaffirmed the commission’s commitment to investor protection and market development, encouraging citizens to consult licensed professionals and avoid get-rich-quick schemes.

    “The SEC has also established dedicated departments to monitor market activities and conduct inspections aimed at detecting irregularities early.

    “These proactive measures are designed to prevent large-scale frauds like CBEX from recurring,” he said.

    He concluded by highlighting the significance of the ISA 2025, describing it as a major step forward in securing the Nigerian investment landscape and building a resilient financial market.

  • Ponzi schemes: Our mumu never do? – By Francis Ewherido

    Ponzi schemes: Our mumu never do? – By Francis Ewherido

    In 1980 or 1981, I learnt a very important lesson that shaped my life. My father had given me “pocket money” and money for provisions for the new term. My brother, Ufuoma, escorted me to Igbudu Market, Warri, Delta State, to buy provisions. When we got to the market, we saw women doing “try your luck” (amateur gambling). Then greed got the better of me. I thought that I could double my provision money and buy more provisions. I decided to stake N1, then N2… (N1 could buy you five tins of sardine at 20k each then). Then Ufuoma noticed that the women were manipulating the table to ensure that I lost each round. He became insistent that we should leave. I would plead with him to allow me one more time. We were conversing in Urhobo and the women understood.  They would manipulate the table to ensure I won the next time. I would tell Ufuoma to allow me continue because I was winning. I wanted to win back the money I lost. Then I would go on a losing streak, then win intermittently. It continued until I had N2 left. We left and walked home. I almost died of hunger that term.

    But the experience was a blessing in disguise. Even as a young teenager, I saw the danger of greed. Forty-five years later, I have never gambled again. Then I learnt that greed is not enough to stop you from being scammed. Desperation can also make you vulnerable to scammers. So, you need to cure yourself of desperation. Later in life I started reading books on personal finance and financial literacy. I learnt that you should not put your money in any business you do not understand. You must acquire the knowledge of how the business operates and generates money or you get your fingers burnt. Acquiring the knowledge is no guarantee that it must be successful all the time, but it increases your probability of succeeding. A life devoid of greed, desperation and having knowledge of what you are investing in is a sure way of avoiding being scammed.

    Why I am going into this long introduction. You must have read about the latest collapse of a Ponzi scheme in Nigeria called CBEX, a digital trading platform with a Nigerian affiliate called Smart Treasure, which started from Ibadan. Last weekend, people who invested in the scheme could no longer access the platform or do transactions. In all depositors have allegedly lost 1.3trillion (about $847m)! Now, let us examine the three ways I have applied to stay safe since 1981. One, zero greed. I wiped greed out of my life after that my experience. I was greedy; that’s why those women at Igbudu Market scammed me. If you are not greedy, you make it very difficult for anybody to dupe you. The highest genuine returns on investments in Nigeria that I know are between 14 per cent to 20 per cent. These are the usual ROI (returns on investment). Of course, there are exceptional cases where people make more money. Someone bought a property. Less than a year later, someone who needed the property urgently offered almost double the amount he paid for the property. Of course, he sold it.

    Investors buy stocks and a short while later, something occurs and the stock price skyrockets. But these are not every day cases. In the case of most Ponzi schemes, they promise investors 100 per cent returns within a month. How is that possible? One hundred per cent ROI within a month? Which business is the company doing with your money? It doesn’t make sense. Don’t you ask questions, investigate or use common sense? Only greedy, desperate or dumb people put their money in such investments.

    Two, desperation. Many people are desperate to make quick money without regards for money making principles that have endured over time. Some people blame their desperation on the current hardship. I beg to disagree sir/ma. Some people have always been desperate to make quick money. This is not the first Ponzi schemes in Nigeria. There have been probably over a 100 Ponzi schemes in Nigeria in the last decade. Some, like MMM, were popular while some were less popular. Either way, Nigerians lost billions of Nigeria due to greed, desperation and ignorance. Tomorrow, another Ponzi scheme will crop up and people will invest and lose their hard earned money again.

    I learnt that CBEX originated in China, but you cannot rule out Nigerian collaborators. Who rented the office in Ibadan? And it looks like the CBEX people are not done with their “investors” They have told investors to pay between $100 and $200 to verify their names on the platform so that payment can commence. These guys are blood-sucking demons. I learnt another valuable lesson from a friend: Cut your losses and know when to do so.

    Three, education. Before investing your money in any business, you should learn about what you are investing your money in, and if you are investing through third parties, understand their business. I remember when I wanted to start investing in stocks, I spent money attending seminars where I was taught technical and fundamental analyses of stocks. When the stock market collapsed, like many other Nigerians, I lost money but it was not necessarily due to lack of knowledge. I remember some stocks I avoided because of my knowledge of stock analysis. One was a company that was into confectionary then. Their bread was good and my family favourite. Then I noticed a gradual depreciation in their service delivery. When their shares were listed in the stock exchange, it rose to N3.50. I avoided it like a plague. The share dropped to 50k before the company was eventually delisted from the stock exchange. There are other stocks like that I avoided because of my knowledge of stock analysis then.

    Now, who are the owners and directors of CBEX?  They are not yet known. All we have heard is that CBEX is from China. Yet people entrusted CBEX with thousands of dollars. Some people sold houses and other assets to invest. No now! It doesn’t make sense. In the past, even some microfinance banks and finance houses of owners and directors we knew packed up and people lost billions of naira, not to talk of Ponzi schemes with faceless promoters.   Wise up.

    In the meantime, the Economic and Financial Crimes Commission (EFCC), has assured the investors that the commission will help them recover their money. It said it is already on the matter. It has spread its dragnet. That would be great, but my worry is that is the money still there? The way Ponzi schemes like this work is that they scarcely do any trading. They rely on new “investors” to subscribe. They use the money to pay those whose payments are due. They continue with the false narrative of trading until they drag enough “investors” and cash into their dragnet. They cash out and the platform collapses, leaving investors weeping and gnashing their teeth, while some commit suicide or die of heart attack and stroke. I hope EFCC will deliver as it promised.

  • How women mostly fall victim of Ponzi schemes in Nigeria

    How women mostly fall victim of Ponzi schemes in Nigeria

    The Securities and Exchange Commission (SEC) says victims of Ponzi schemes in the country were mostly women.

    Dr Emomotimi Agama, Director-General, SEC, said this on Thursday in Abuja, at an event to mark the International Women’s Day (IWD) celebration organised by the commission.

    Agama said that there was therefore the need to educate and empower women to make informed decisions and create wealth in the capital market.

    According to him women make up the commodities market. We want to make sure that we provide an avenue and a platform where they can sell their produce after producing them.

    ”I also want to speak about the vulnerabilities of women. Most of the Ponzi schemes that we have in Nigeria, the majority of the victims are women.

    ”And the reason is very simple, the woman’s heart is very empathic, all that she thinks about is how to resonate her family, help her family, and grow the provisions of her family.

    ”We must re-empower the women, re-educate them, and we must bring them to the fore of national recognition when it comes to the capital market.”

    In the same vein, the Minister of Women Affairs, Hajia Imaan Sulaiman-Ibrahim, charged women to make their impact count through display of excellence.

    The minister commended the SEC for financial literacy to the women on finance investment, saying it would help them make better investment decisions.

    Sulaiman-Ibrahim said that the programme would also equip them with sound financial knowledge on savings, investments, and wealth creation.

    She added that it would provide access to secure financial products tailored to women’s needs and strengthen protections against financial exploitation, particularly through Ponzi schemes and fraudulent investment platforms.

    In a lecture, Mrs Hafsat Rufai, the Director, Registration, Exchanges and Market Infrastructure, SEC, said that the capital market played pivotal role in economic development.

    She listed some benefits of investing in the capital market to include wealth creation, dividend income, liquidity and tax benefits.

    The director called on women to verify and ensure that investment companies were registered by the SEC before patronising them.

    Similarly, Mrs Hansatu Adegbite, Chairperson, Association of Nigerian Business Women Network, commended SEC for the financial literacy initiative for women.

    ”Where poverty prevails, we need to create wealth. One place that women do not look at is the capital market. We need some of these lectures to educate more women.

    ”Women need to look inward to invest; you must multiply your money. It is time to arise and educate ourselves and take actions,” she said.

    Women associations from various sectors attended the event. The event is with title ”Accelerate Action: Empowering Women through Financial Literacy and Inclusion’.

  • SEC intensifies crackdown on Ponzi schemes

    SEC intensifies crackdown on Ponzi schemes

    The Securities and Exchange Commission (SEC) says it will intensify efforts to eliminate Ponzi and pyramid schemes, thereby fostering an environment for genuine investment opportunities to thrive in 2025.

    Dr Emomotimi Agama, the Director General of SEC, said this in his New Year message to the capital market community on Sunday. He said that protecting investors remained a cornerstone of the commission’s mission.

    Agama also said that the commission would prioritise key initiatives aimed at deepening market integrity, enhancing investor confidence
    and driving economic growth.

    According to him, SEC is positioned with a dual mandate in regulating and developing the capital market in Nigeria.

    “Naturally, our top priority in 2025 will cut across the dual mandate. For us, mainstreaming the Nigerian Capital Market into the economy is very vital.

    “Enforcement is the backbone of effective regulation. We are revamping our investigative processes to enhance efficiency and hold bad actors accountable more decisively.

    “Insider trading undermines activities and dampens market fairness. By revising our regulatory framework, we aim to strengthen detection, prevention, and accountability mechanisms.

    “Transparency is at the heart of investors confidence and capital markets. We will introduce measures to ensure greater visibility and trust in securities transactions,” he said.

    The director-general added that to resolve market disputes efficiently and fairly, the commission was focusing on enhancing the operations of the Investments and Securities Tribunal (IST).

    He noted that these efforts aim to make the tribunal more effective in delivering timely resolutions, thereby improving overall efficiency in the process.

    Agama stated that key focus for the commission in 2025 is strengthening the legal framework of the commodities market to enable it attain its full potential of aiding economic development.

    He said the commodities market is a major area of interest for SEC, adding that Nigeria is purely an agrarian nation.

    The director-general said that taking that comparative advantage to the next level, is something that the commission is proud to be part of.

    Agama said this year, SEC would focus on reinforcing the legal and regulatory structures that support growth to create a solid foundation for the vibrant commodities ecosystem, be it soft or hard commodity.

    “More so, when we have a plethora of commodities all over Nigeria. SEC as a partner in development will make sure that we make the difference,” he said.

    Agama said that these initiatives reflect the commission’s vision for a stronger and more inclusive capital market in 2025, adding that SEC is committed to building wealth, instilling confidence and making  impacts.

    The SEC boss said: “As we embark on this journey, I invite all stakeholders to work with us in achieving these goals.

    “Together, we can unlock the potentials of the Nigerian capital market and make this a defining year for our economy.

    “What we intend to do, is to steer the capital market towards a direction that ensures that development gets to the doorstep of every Nigerian.”

  • Ponzi schemes growing at alarming rate in Nigeria – SEC warns

    Ponzi schemes growing at alarming rate in Nigeria – SEC warns

    The Securities and Exchange Commission (SEC) says Ponzi schemes in the country’s market is continuously growing on a daily basis.

    Dr Emomotimi Agama, the Director-General of SEC said this at an engagement with newsmen in Abuja on Monday.

    Agama who appealed to journalists to help the Commission with information on the schemes, vowed to take regulatory actions on any Ponzi scheme discovered.

    ”The other thing I will also encourage you to do, because its time I mentioned it is that the number of Ponzi schemes in the Nigerian market grows every day.

    ”You can do one thing to help the SEC and to help the citizenry of this country by letting us know. We can assure you that every information you give to us will be treated in strict confidence.

    ”But that is not even what is important. What is important is that we will take action no matter whose ox is gored,” he said.

    Agama said that losses in the capital market was an opportunity for people to come in and invest and not a time to fear or exit the market.

    ”I dare say here that when the market goes down, when the market makes a loss, or becomes  bearish, there is one thing that it does, which I would encourage you to report.

    ”Every loss that is made in the market is an encouragement for people to come in. Because when the prices are down, it is the time to come in.

    ”To think that when the prices are down is a negative trend, I beg to differ. It only provides an opportunity more than you can imagine. When the prices are down, it means more people should come and invest.

    ”And if we see it that way as journalists, the information to be conveyed to people will be that of hope rather than that of fear,” he said.

    He said that the journalists were invaluable in shaping public perception and understanding the market. According to him, through accurate reporting and constructive critiques, you are partners in building trust and confidence in the country’s capital market.

  • ISB proposes N20m fine for Ponzi scheme operators

    ISB proposes N20m fine for Ponzi scheme operators

    The Securities and Exchange Commission (SEC) says the Investments and Securities Bill (ISB) 2024 is proposing a penalty of not less than N20 million or 10 years imprisonment or both  for Ponzi scheme operators.

    The Director-General of SEC, Dr Emomotimi Agama, said this at the Public Hearing of the bill on Thursday in Abuja.

    Agama said that the bill also prescribed stringent jail terms and other stiff sanctions for the promoters of Ponzi schemes.

    He said that SEC introduced an express prohibition of Ponzi/Pyramid Schemes and other illegal investment schemes to ensure that illegal fund managers were not allowed to fleece unsuspecting Nigerians of their funds.

    Agama said the commission had observed areas which required review in the ISB 2007 to strengthen existing provisions, remove ambiguities, introduce new provisions that would enhance the international competitiveness of the Nigerian capital market.

    Agama said the move was to reposition the market to catalyse national economic transformation.

    ”A vital provision in the Bill is the new stipulation that the Investor Protection Fund (IPF) set up by the securities exchanges would compensate investors who suffer pecuniary losses arising from the revocation or cancellation of the registration of a dealing member firm.

    “In the extant law, compensation from the IPF is limited to instances of “bankruptcy”, “insolvency” or other acts of “negligence” by a dealing member firm.

    “This Bill also contains an entirely new part which provides for the regulation of Commodity Exchanges and Warehouse Receipts.

    ”These provisions are essential for the development of the entire Commodities ecosystem. There is no doubt that Nigeria needs and deserves a world-class capital market to facilitate the on-going economic diversification.

    “The passage and enactment of the Investments and Securities Bill will be a pivotal step in this direction,” he said.

    In his remarks, the President of the Senate, Sen. Godswill Akpabio, said the ISB 2024 was a beacon of hope for the nation’s economic landscape.

    Akpabio, represented by Sen. Binos Yaroe, said the country was taking a bold step toward modernising its financial market and fostering transparency by repealing the ISB Act 2007.

    He said the Bill was designed to create a more robust and equitable environment for investments to thrive in an increasingly competitive global economy.

    ”As we delve into the discussions today, I urge you to embrace this opportunity with an open heart and a discerning mind. The importance of your contributions cannot be overstated. We are gathered here to listen, to learn, and to engage in honest dialogue.

    ”Your insights will help us craft a Bill that not only reflects the aspirations of our people but also addresses the intricate challenges we face in the investment landscape. Let us remember that the Senate remains fully committed to Nigerian people.

    “Together, we can ensure that the ISB 2024 is not just a piece of legislation but a transformative tool that propels Nigeria towards a future of economic resilience and prosperity,” Akpabio said.

    The Chairman, Senate Committee on Capital Market, Sen. Osita Izunaso, Izunaso said that a well-developed capital market which served as the bedrock for long term capital raising and industrial development was imperative.

    Izunaso said the capital market required a strong legal framework which was in conformity with ever evolving societal and global realities.

    “You will all agree with me that Fintech has caused a lot disruptions in the capital market in recent years such that digital assets platforms are fast gaining ground as a critic aspect of the capital market ecosystem.

    “Having operated the ISA 2007 for over 15 years, it has, therefore, become apparent that the law requires holistic review in order to strengthen its existing provisions, remove ambiguities, introduce new provisions that will enhance the international competitiveness of the Nigerian capital market.

    ”This will help reposition the market to more strategically fulfil its role as a critical segment of the Nigerian financial system,” he said.

  • SEC, NFIU sign MoU to tackle ponzi schemes, fraud

    SEC, NFIU sign MoU to tackle ponzi schemes, fraud

    The Securities and Exchange Commission (SEC) has signed a Memorandum of Understanding (MoU) with the Nigerian Financial Intelligence Unit (NFIU) to combat Ponzi schemes and fraud in the capital market.
    Mrs Mary Uduk, the Acting Director-General of SEC, disclosed this in a statement in Abuja on Wednesday.
    She said the collaboration was necessitated by the need for SEC and NFIU to close ranks in the face of “insider dealings, reawakening of Ponzi schemes, cybercrime and other fraudulent activities that have engulfed the market in the last few years”.
    Uduk said the commission was paying close attention to digital transactions and was in the process of amending its laws to capture such activities.
    According to her, SEC already has regulations prohibiting shell companies from operating in the capital market.
    She stated that under the collaboration, NFIU would assist the commission in tracking suspicious transactions as they occur.
    “If we have solutions that will help us track transactions, it will greatly reduce the incidence of insider dealings.
    “We will be very willing to collaborate with you on that in our determination to ensure that our markets are efficient and transparent and all investors are protected’’, she said.
    The MoU, she said, covers training, secondment of middle cadre officers between the organisations, cross-border monitoring, repatriation of stolen funds from the capital market and prosecution of offenders, among others.
    On the rising incidence of Ponzi schemes in the country, Uduk stressed the need for more public sensitisation to ensure that unsuspecting Nigerians do not continue to lose their hard-earned money.
    In his remarks, Mr Modibbo Tukur, the Director of NFIU, assured SEC that the Agency would continue to play its part in ensuring that the financial system was safe for Nigerians to operate.
    He disclosed that NFIU was making efforts to ensure that the financial system was rid of shell companies, adding that, for companies to exist, they should have physical addresses.
    “If anyone establishes a company, it has to be a company indeed and we have to be firm on this.
    “This has become more important now given the roll out of the Economic Community of West Africa States (ECOWAS) single currency, because with that, we know that capital and investments will move across borders and it is a single currency.
    “So, we have to step up regulation to avoid fraudulent transactions. We will begin by September and some companies will have to be deregistered if they do not meet the criteria.
    “We will publish the parameters and also give them enough time to regularise after which those that do not comply before the deadline will be shut down.
    “If you have an empty company hanging in the system, it is a potential danger and we should not allow it to thrive,” Tukur said.
    Tukur added that when the NFIU began its due diligence on the shell companies, the information would be shared with SEC for further action.
    He commended SEC on its regulation barring shell companies from operating in the capital market.