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SEC warns Nigerians against fraudulent investment firms

Joseph Oyekanmi



SEC to boost profitability, reduce cost of operations

The Securities and Exchange Commission (SEC) has reiterated its warning again, bemoaned the proliferation of fraudulent investment outfits in the capital market, urging investors to desist from patronising such illegal operators.

The Director-General of SEC, Lamido Yuguda, while speaking at the second post-Capital Market Committee (CMC) virtual media briefing held at the weekend, urged Nigerians to stay away from fake financial experts who promise to double their money within a short time.

He said the commission would intensify efforts to clamp down on promoters of these illegal investment outfits in the capital market, in addition to its commitment to zero tolerance for infractions.

According to him, the commission has adopted multi-level engagements with media platforms and regulators of public agencies to curb the activities of these illegal operators.

“While we continue our activities to resolve the complaints that have been forwarded to the commission through the official channels, it is important to reiterate to the investing public to be wary of unscrupulous schemes that promise unrealistic returns on investment.

“He assured investors that the commission will not hesitate to deal decisively with any operator who carries out any activity outside the function(s) approved for it by the regulator.”

Yuguda described Ponzi schemes as a threat to market development, stating that the pervasiveness of Ponzi schemes impacts negatively on investors’ confidence.

“Every month, every day, many of our citizens lost huge monies to Ponzi scheme operators and the commission has adopted a variety of measures including putting up the list of the authorised operators on our website so that interested investors will check our website to confirm that the scheme they are intending to invest in is through a registered operator by the SEC. “But unfortunately, many of these Ponzi scheme operators give mouth-watering promises and entice many gullible investors. In the end, monies are lost and these investors start flocking to our offices to complain,” he said.

The SEC boss said the Commission’s efforts in addressing Ponzi scheme challenges are aimed at protecting investors and preserving market integrity, stating that the Nigerian capital market should be a safe destination for investors.

He pledged that the SEC would continue to apply innovative measures to combat the activities of Ponzi schemes while seeking the cooperation of relevant stakeholders. (VON)


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