The Securities and Exchange Commission (SEC) has initiated a nationwide campaign to raise awareness about the dangers of Ponzi schemes, particularly targeting markets, churches, mosques, hospitals, and military barracks across Nigeria. The move comes as part of the commission’s efforts to protect Nigerians from falling prey to fraudulent investment schemes that promise unrealistic returns.
The campaign kicked off at Wuse Market in Abuja on Friday, where SEC’s Director-General, Dr. Emomotimi Agama, addressed traders and market-goers about the risks of Ponzi schemes. In his speech, Dr. Agama expressed concern over the growing number of Nigerians, especially traders, who have been defrauded by these schemes. He noted that the sensitisation effort was designed to reach people directly, ensuring that they fully understand the dangers involved in such illegal investments.
“We discovered that it’s difficult for people to access the information they need just from our website or through other indirect means,” Dr. Agama said. “That’s why we decided to come out physically to educate Nigerians about Ponzi schemes, particularly in areas where they are most likely to be targeted.”
The SEC has recognised that Ponzi schemes are a global issue, and they have now decided to tackle it head-on by taking the message directly to the public. Dr. Agama remarked that this direct outreach to citizens is a new initiative by the commission, which had not been done before on such a scale.
The commission’s efforts are aimed at enlightening Nigerians about the risks associated with Ponzi schemes, where investors are promised quick, high returns but end up losing their money when the perpetrators disappear. Dr. Agama appealed to the media to assist in spreading the message about the dangers of these fraudulent schemes to a wider audience.
At the Wuse Market event, several victims of Ponzi schemes shared their personal experiences, offering cautionary tales to fellow traders. One of the victims, Mr. Abraham Onoja, a trader at the market, shared how he lost seven million naira to a Ponzi scheme.
Onoja explained that he initially invested N2 million, and after one week, he received N2.45 million, which seemed like a legitimate investment. Encouraged by this, he convinced his neighbor to invest N20 million, and after a week, the neighbor received N27 million in return. This quick profit convinced Onoja to invest N7 million, only to find out the next day that the people behind the scheme had vanished, taking all of their money.
“I don’t usually believe in money-doubling schemes, but someone convinced me to invest, and I ended up losing everything,” Onoja said. “I’m urging everyone to be careful and think twice before investing in such schemes.”
Another market trader, Mr. Chijioke Nnodim, also shared his experience and advised fellow citizens to be vigilant and thoroughly investigate any investment opportunity before committing their money. “Make sure you verify and be careful before investing in any company. If it sounds too good to be true, it probably is,” he warned.
The SEC’s nationwide campaign will continue in markets, churches, mosques, and other community spaces to ensure that as many Nigerians as possible are informed about the risks of Ponzi schemes. The commission is particularly concerned about the widespread nature of these schemes and their impact on vulnerable populations who may not be fully aware of how they operate.
Through these community outreach programs, the SEC aims to reduce the number of Nigerians who fall victim to such fraudulent activities. As part of their ongoing efforts, the commission is encouraging Nigerians to report any suspicious investment schemes to the appropriate authorities and to always seek proper verification before making any financial commitments.
The SEC has made it clear that it will continue to work towards creating a safer financial environment for Nigerians, one that promotes informed investment decisions and protects citizens from harmful, deceptive practices. Through its new, direct approach, the SEC hopes to empower Nigerians with the knowledge they need to avoid falling into the trap of Ponzi schemes.
