New Telegraph

Shun wonder banks, Ponzi schemes, NDIC warns Nigerians

The Nigeria Deposit Insurance Corporation (NDIC), has alerted Nigerians to the existence of wonder banks and Ponzi schemes promising mouthwatering investment returns. The corporation drew the attention of Nigerians via its verified tweet on Friday. There has been a proliferation of wonder banks and Ponzi schemes in Nigeria’s financial space. Nigeria’s financial regulatory agencies- the Central Bank of Nigeria, NDIC and Securities and Exchange Commission ( SEC), have been waging unrelenting wars against unregulated Ponzi schemes, which promise unsuspecting investors bogus Returns on Investment (ROI).

In a renewed bid by NDIC to further enlighten unsuspecting members of the public to continued activities of wonder banks in Nigeria’s finance space, the corporation in a tweet urged Nigerians to “beware of offers of big payouts from unverified financial institutions. “They are most likely Wonder Banks or Ponzi Schemes.” It urged Nigerians to report “a Wonder Bank by going to https://t.co/ voGlZw463v and clicking on ‘Need Help?’ or visiting https://t.co/lc9E4C8xqt.” Lately the Securities and Exchange Commission (SEC), frowned at the resurgence of Ponzi schemes, and illegal fund managers in the country’s financial sector.

The Director-General of SEC, Lamido Yuguda, frowned at the development at an enlightenment workshop with the staff of the Federal Ministry of Finance, Budget and National Planning. Mr. Yuguda said the unlawful schemes had con-tinued to enjoy massive patronage of the populace and remained a source of concern for regulators in the financial sector. According to him, the commission is poised to continue to apply measures and seek the cooperation of relevant stakeholders toward combating the activities of these Ponzi schemes. He regretted that the upsurge of the schemes had undermined the reputation of the financial markets and dampened investors’ confidence, among other things.

“SEC firmly believes that the country’s capital market can attain its potential if market operators and participants contribute their respective quotas to the growth. “SEC is committed to always ensuring and maintaining an environment that is enabled by the appropriate regulatory framework, timely, and affordable access to market. “The commission is also committed to zero tolerance for infractions, heightened investor confidence and awareness, innovative product development and good governance practices. “There is the need to restore investor confidence and improve the participation of retail investors in the market.

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