The Economic and Financial Crimes Commission (EFCC) has raised a public warning about 58 companies allegedly operating illegal Ponzi schemes across Nigeria. These companies, which present themselves as legitimate investment entities, have been accused of defrauding unsuspecting Nigerians of their hard-earned money.
In a statement posted on its official Facebook page on Tuesday, the EFCC stated that the affected companies are neither registered with the Central Bank of Nigeria (CBN) nor the Securities and Exchange Commission (SEC), two key regulatory bodies that oversee legitimate financial operations in Nigeria. The commission confirmed that both the CBN and SEC had separately clarified that these companies are not authorized to operate in the country.
The EFCC’s statement highlights that the companies are involved in fraudulent activities under the guise of investment opportunities, luring Nigerians with promises of high returns on investments. Many of these schemes, also known as Ponzi schemes, work by using money from new investors to pay returns to earlier investors, instead of generating profits from actual business activities. This system eventually collapses when there are not enough new investors to continue paying the promised returns.
“The Commission has charged many of these companies to court. Five have already been convicted, another five have pleaded guilty but are awaiting a review of facts, while the rest are pending arraignment,” the EFCC said in the statement.
The agency has listed several of these companies by name, warning the public about their illegal activities. Some of the companies include:
– Wales Kingdom Capital
– Bethseida Group of Companies
– AQM Capital Limited
– Titan Multibusiness Investment Limited
– Brickwall Global Investment Limited
– Farmforte Limited & Agro Partnership Tech
– Green Eagles Agribusiness Solution Limited
– Richfield Multiconcepts Limited
– Forte Asset Management Limited
– Letsfarm Integrated Services
– Bara Finance & Investment Limited
– Vicampro Farms Limited
– Brooks Network Limited
– Gas Station Supply Services Limited
– Brass & Books Limited
– Crowdyvest Limited
– Jadek Agro Connect Limited
– Adeeva Capital Limited
– Oxford International Group and Oxford Gold Integrated
– MBA Trading & Capital Investment Limited
– TRJ Company Limited
– Farm4Me Agriculture Limited
– Quintessential Investment Company
– Rockstar Establishment Limited
– SU Global Investment
– Citi Trust Funding PLC
– Farm Buddy
– Eatrich 369 Farms & Food
– Farm Sponsors Limited
– Cititrust Credit Limited
– Farmfunded Agroservices Limited
– Chinmark Homes & Shelters Limited
– Ovaioza Farm Produce Storage Limited
– Requid Technologies Limited
– Crowd One Investment
– Farmkart Foods Limited
– Holibiz Finance Limited
– Ifeanyi Okpe Oil & Gas Services
– Barrick Gold Mining Company
– 360 Agric Partners Limited
The EFCC’s warning comes after numerous complaints from Nigerians who have fallen victim to these fraudulent schemes. Many victims have reported losing large sums of money after being promised high returns on investments that never materialized. The commission stressed that these companies often use deceptive marketing strategies to lure in new investors, promising quick and easy profits without providing any legitimate details about their business operations.
The EFCC has committed to closely monitoring the financial sector to ensure that all economic activities are legitimate and comply with Nigerian law. The agency has pledged to take swift legal action against any company or individual found to be operating Ponzi schemes or engaging in any form of financial fraud.
In its statement, the EFCC urged Nigerians to be cautious before investing in any financial schemes, particularly those that seem too good to be true. The commission advised Nigerians to always verify the legitimacy of investment opportunities by consulting with the appropriate regulatory bodies, such as the CBN and SEC.
“Nigerians are advised to exercise caution and ensure that any company they wish to invest in is duly registered with the appropriate regulatory bodies,” the EFCC said. “Before making any financial commitment, it is important to check the company’s credentials to avoid falling victim to fraud.”
The EFCC also reminded Nigerians that it is illegal for companies to operate Ponzi schemes, as such operations are not based on any real business activities. In a Ponzi scheme, the returns promised to earlier investors are paid using the funds of new investors, rather than from profits earned by the business. This creates a false appearance of profitability and sustainability, but the scheme eventually collapses when new investments stop coming in or when the scheme operators disappear with the investors’ money.
Ponzi schemes have been a long-standing issue in Nigeria, with numerous individuals and companies being caught in the act over the years. The EFCC’s alert serves as a reminder of the dangers of falling for fraudulent financial schemes and highlights the agency’s ongoing efforts to protect Nigerian citizens from financial scams.
The commission has also stated that it will continue to monitor these companies and ensure that legal action is taken against those found guilty of operating fraudulent schemes. Nigerians who are aware of any company involved in Ponzi activities are encouraged to report them to the EFCC for further investigation and action.
This warning from the EFCC comes at a time when financial fraud is on the rise in Nigeria. With the increasing number of people looking for investment opportunities, especially in the wake of the economic challenges faced by many Nigerians, Ponzi schemes have become an attractive but dangerous option for both victims and perpetrators. These schemes are often marketed through social media platforms and word of mouth, making them harder to track and regulate.
In response to the growing number of Ponzi schemes, the EFCC has also called on Nigerians to be vigilant when considering investment offers that promise unusually high returns with little to no risk. It is important for individuals to understand that legitimate investments involve risks, and high returns without corresponding risks are often signs of fraudulent schemes.
