Financial Illiteracy Behind Rise in Ponzi Schemes in Nigeria—SEC

By Dipo Olowookere

The rise in the number of Ponzi scheme operators, especially in the northern part of Nigeria, has been attributed to financial illiteracy.

The Kano zonal head of the Securities and Exchange Commission (SEC), Mr Mohammed Danladi, said this on Tuesday when he visited the Kano zonal head of the Economic and Financial Crimes Commission (EFCC), Mr Sanusi Mohammed.

He also said most of the Ponzi scheme operators in the country avoid SEC registration because they know they would be monitored, noting that the visit to the EFCC was to solidify the already existing relationship between both organisations.

“This visit is nothing more than to solidify the existing relationship between EFCC and SEC which dates back to the inception of EFCC. We are here to renew that relationship, foster it and fight the common enemy together,” he said.

While responding, Mr Mohammed of the EFCC said illegal fund managers in the country will soon experience tough times because efforts would be doubled to clamp down on them.

He suggested the establishment of a joint operation between the two agencies to curtail the spread of Ponzi schemes and prevent the public from falling victims of the scam.

According to Mr Mohammed, efforts must be made to fight financial crimes in the region.

“As long as the mandate of EFCC and that of SEC remain, you cannot separate the SEC and EFCC. We will continue to work together institutionally,” he said.

“Where the SEC’s main concern is to make sure investors are protected from losing their investments, the EFCC’s concern is the protection of the general public from the activities of fraudsters, which are one and the same,” the EFCC chief said.