Some financial experts and capital market operators have cautioned Nigerians against investing in Ponzi schemes to avoid losing money to fake capital and financial market operators in the country.
Speaking at a webinar that reviewed the theme “Ponzi: Plugging the Ills of Unregistered Fund Managers in Nigeria”, President of the Association of Corporate and Individual Investment Advisers, Mr Akin Adeniyi, said investors have lost over N300 billion to these schemes across various platforms in the country.
Adeniyi explained that the proliferation of firms and funds that are unregistered with the Securities and Exchange Commission, aggressive advertising campaigns designed to extort people, and others are responsible for the surge in Ponzi schemes in Nigeria.
Mr. Adeniyi also outlined why Nigerians should invest with suitable capital market operators with a proven track record and market values.
On his part, Mr. Okey Umeano, Chief Economist, SEC Nigeria speaking on why people fall into the trap of Ponzi Schemes, said the major pull factor is the “Investors Greed”.
In her contribution, Toyin Kekere-Ekun, CEO of Lotus Financial Services Limited, called for increased awareness of the patterns and dangers of the Ponzi schemes in the Nigerian financial market, which will equip Nigerian investors with the knowledge and insight on detecting and avoiding them.