Following the losses, experts have urged the Federal Government to create policies that will promote national development, tackle prevailing stock market volatility, restore the stock market to sustainable growth and make returns on investment in Federal Government bonds more attractive.
This has been a recurring challenge and has of late grown aggressively as more Nigerians have fallen and are still falling victims to such schemes. The SEC recently announced that the ponzi scheme outfit currently under its investigation is the ‘grand-daddy’ of the fraudsters, stating that the promoter is estimated to have collected over N147 billion between 2019 and 2020.SEC said: “There is an online ponzi scheme under our investigation. Some of those who have suffered from these schemes have been heartbroken; some have committed suicide.”
Another victim, Enokela Monday, a 100 level student of Air Force Institution of Technology, Kaduna, invested N1.5 million, meant for his school fees, rent and loan he collected from his friend. Several media houses validated the investment opportunity. This made it difficult for victims to exercise restraints. That the investment promoters were only 21 with 10-year investment experience did not raise any red flag among the investors.
Companies, which had undertaken private placements during the stock market boom period, had tied down funds without listing the shares on the exchange to generate returns as projected in their prospectuses. Indeed, N700 billion investors’ funds were discovered to have been trapped in private placements by firms.
Here, investment funds are pooled with others, and investors receive returns that are paid from the deposits of new investors. Rarely is the money invested in real investment vehicles. “These fraudsters or promoters of ponzi schemes are the false prophets of the investment environment; they are the ill wind that blows no good and at whose sight you must flee. How can somebody give you 50 per cent return? Where is he going to get the 50 per cent? Where is he going to put the money? What is he going to do?”
The experts also urge SEC to publicise lists of individuals or entities that hold or do not hold a license to carry out financial activities; and a database of actions taken against specific individuals and entities.
greed eats brain
Eh, the one our govt don chop, which one pass? Abeg make de money circulate🤧
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