Economy
SEC to Sustain Clampdown on Ponzi Scheme Promoters
By Aduragbemi Omiyale
There will be no breathing space for promoters of Ponzi schemes in Nigeria, the Securities and Exchange Commission (SEC) has assured.
At its Journalists’ Academy 2025 in Lagos a few days ago, the agency said it was determined to collaborate with other organisations to protect unsuspecting investors from losing their funds.
According to the Divisional Head for Legal and Enforcement at SEC, Mr John Achile, perpetrators of Ponzi schemes would be prosecuted in line with the Investments and Securities Act (ISA) 2025.
He said SEC would continue to ensure criminal investigation and prosecution in collaboration with law enforcement agencies such as the Nigeria Police Force, EFCC and Office of Attorney General of the Federation, among others.
Mr Achile further said the commission would continue to freeze the accounts and seal-up offices of operators who failed to register their tradable securities and assets with the regulator.
Highlighting the characteristics of Ponzi scheme, Mr Achile, who spoke on the topic, Combating Investments Fraud, Ponzi Schemes and Illegal Investments, said it requires the entrance of new investors to pay existing investors.
According to him, investors are usually provided with fake documents or incomplete documents.
He listed other characteristics to include high returns on investment with little or no risk, consistent promise of positive returns despite the economic difficulties, not registered by the appropriate regulatory agencies and promoters not known to the regulators.
He urged Nigerians to conduct thorough due diligence and be skeptical of “get-rich-quick” promises in order not to burn their hands, calling on investors to enquire from regulators of the sector of business touted before investing.
“Ponzi scheme could be structured as investment in agricultural business or processing along the value chain, investment in Bitcoin or cryptocurrency or other digital currencies and investment in gold coins or precious stones,” he said.
He noted that Ponzi scheme undermines confidence in the financial markets, loss of confidence in the regulator and the government when failure occurs, reduces deposit in commercial banks, diversion of savings, huge scale of loses to investors and attendant socio-economic problems.
By Adedapo Adesanya
The trading compass at the NASD Over-the-Counter (OTC) Securities Exchange pointed north on Monday, January 5 after the market closed higher by 0.60 per cent.
The NASD Unlisted Security Index (NSI) added 21.49 points to close at 3,575.33 points compared to the previous session’s 3,553.84 points just as the market capitalisation inflated by N12.86 billion to finish at N2.139 trillion, in contrast to last Friday’s value of N2.126 trillion.
The growth recorded by the NASD OTC bourse yesterday was influenced by three securities led by FrieslandCampina Wamco Nigeria Plc, which gained N4.70 to close at N51.70 per share compared with the previous N47.00 per share.
Further, Geo-Fluids Plc appreciated by 43 Kobo to settle at N6.94 per unit versus N6.51 per unit, and Central Securities Clearing System (CSCS) Plc appreciated by 37 Kobo to N36.00 per share from N35.63 per share.
Data from the alternative stock exchange showed a drop in investor appetite as the volume of trades declined by 94.7 per cent to 193,973 units from 3.6 million units, while the value of transactions decreased by 68.2 per cent to N4.5 million from N14.1 billion, with the number of deals sliding by 34.8 per cent to 15 deals compared to 23 deals.
At the close of business, CSCS Plc was the most traded stock by value on a year-to-date basis with 341,080 units sold for N12.2 million, followed by Geo-Fluids Plc with 535,970 units valued at N3.5 million, and Industrial and General Insurance (IGI) Plc with 2.9 million units exchanged for N1.9 million.
However, IGI Plc was the most active stock by volume on a year-to-date basis with 2.9 million units traded for N1.9 million. trailed by Geo-Fluids Plc with 535,970 units worth N3.5 million, and CSCS Plc with 341,080 units valued at N12.2 million.
By Adedapo Adesanya
The Naira opened the week on Monday, January 5, higher against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) after gaining N1.54 or 0.11 per cent to sell for N1,429.31/$1, in contrast to the preceding session’s N1,430.85/$1.
This positive run extended was witnessed against the Pound Sterling in the official market yesterday as the Nigerian currency improved its value by N5.51 to trade at N1,920.27/£1 versus last Friday’s price of N1,925.78/£1 and appreciated against the Euro by N10.80 to close at N1,667.43/€1 compared with the previous trading day’s rate of N1,687.24/€1.
At the black market, the Naira chalked up N5 against the US Dollar during the session to sell for N1,470/$1 versus the preceding session’s N1,475/$1 and at the GTBank forex counter, it lost N3 to settle at N1,438/$1 versus the previous value of N1,435/$1.
The Naira seems to have continued from where it left of in 2025, a year that it maintained relative stability, a sharp contrast from the extreme volatility witnessed in 2024. The domestic currency exchange rate appreciated by 7.4 per cent year-on-year to close FY 2025 at N1,429/$1.
Despite pressure from the movement of the Dollar in the international market early on Monday, the Naira is shielded by a broadly stable outlook, supported by rising external reserves and sustained Foreign Portfolio Investments (FPIs).
Market analysts expect that the Central Bank of Nigeria (CBN) will maintain its strategic interventions in the FX market and implement initiatives aimed at boosting liquidity and curbing speculative activities.
As for the cryptocurrency market, Ripple (XRP) continued to trade above $2, driven by heavy institutional trading and a shrinking supply on exchanges. It’s value went up by 10.9 per cent on Monday to $2.36.
Spot XRP exchange traded funds (ETFs) in the US posted $48 million in inflows on Monday, extending a green streak for the products, which have not seen a single day of outflows since their November 13 launch.
Yesterday, Cardano (ADA) grew by 4.6 per cent to $0.4202, Solana (SOL) added 2.3 per cent to quote at $138.33, Ethereum (ETH) increased by 2.1 per cent to $3,223.22, Litecoin (LTC) expanded by 1.5 per cent to $83.45, Bitcoin (BTC) rose by 0.9 per cent to $93,323.81, Binance Coin (BNB) also appreciated by 0.9 per cent to $905.01, and Dogecoin (DOGE) soared by 0.2 per cent to $0.1505, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
The crude oil market was up by about a Dollar per barrel on Monday as traders assessed the possible impact on crude flows from Venezuela, home to the world’s largest oil reserves, following the capture of President Nicolas Maduro by the United States.
Brent crude gained $1.01 or 1.66 per cent to sell at $61.76 a barrel and the US West Texas Intermediate (WTI) crude appreciated by $1 or 1.74 per cent to $58.32 per barrel.
Investors digested news of President Maduro’s capture and that the US would take control of Venezuela, which is a founding member of the Organisation of the Petroleum Exporting Countries (OPEC), whose crude exports had been under a US embargo.
Venezuelan oil output has plummeted in recent decades, curbed by mismanagement and a lack of foreign investment after the nationalisation of oil operations in the 2000s. Output averaged about 1 million barrels per day last year, equating to about 1 per cent of global production.
It was reported that the US government would meet with oil companies, Exxon Mobil, ConocoPhillips, or Chevron Corp, to discuss Venezuelan oil production future.
Market analysts noted that Venezuelan production could rise by as much as 500,000 barrels per day over the next 18 months under improved political and investment conditions, a development that could further weigh on oil prices despite the likelihood of a response from OPEC and its allies (OPEC+) if inventories rise sharply.
US President Donald Trump has been very clear that the blockade of Venezuela and the capture of its president have been driven by the desire to revive Venezuela’s oil industry and regain what he alleges were stolen assets and oil.
President Trump also raised the possibility of further US interventions, suggesting Colombia and Mexico could face military action if they did not reduce the flow of illicit drugs.
Analysts are also awaiting Iran’s reaction to President Trump’s threat to intervene in a crackdown on protests in the OPEC producer.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn