The Securities and Exchange Commission’s (SEC) Executive Commissioner Operations, Mr Dayo Obisan, stated that the agency is working tirelessly to ensure that investors identify genuine investment opportunities through investor education programs.
Speaking at one of such workshops for Federal Road Safety Corps (FRSC) staff in Abuja on Wednesday, the capital market expert expressed concern about the activities of Ponzi scheme operators, who he claims are taking advantage of the public’s lack of market knowledge to dupe them.
To combat the threat, he assured that the organization would continue to use its enforcement mechanisms, including collaboration with other relevant government agencies and stakeholders.
Mr Obisan, who was represented by Mr Nestor Ikeagu, Director of the Market Development Department, stated that the promoters of these unscrupulous schemes pose as capital market operators in order to defraud investors of their money with enticing promises of high returns on investments.
This has made it difficult for investors to differentiate between genuine and false investment opportunities. The activities of these Ponzi scheme promoters have posed a huge challenge to the commission. In combating them, we are working in collaboration with other agencies to nip their activities in the bud.
Also, the commission is working tirelessly to ensure investors are aware of these nefarious activities through investor education programmes. We urge the FRSC to partner with us in the fight against Ponzi schemes by reporting to the SEC anytime such activities are noticed. We can be reached via www.sec.gov.ng, +234-094621168 and the SEC social media handles, he stated.
He expressed the hope that the programme will give participants an overview of the capital market and allow them to learn how to invest in the Nigerian capital market, including Collective Investment Schemes being managed by professionals, in addition to exposing participants to the activities of Ponzi schemes and how to identify them.
The Executive Commissioner disclosed that the SEC has a dual mandate to regulate and develop the Nigerian capital market that is fair and orderly and engenders investor confidence adding that a key aspect of the SEC’s market development role is enlightenment and investor education.
In his remarks, the acting Corps Marshal of the FRSC, Mr Dauda Biu, stated the importance of officers of the corps being financially literate.
Represented by Corps Commander, Mr Anume Osuamkpe, he said Nigerians would only be able to avoid fraudulent investment schemes if they have the requisite knowledge.
This training is very important as it will enable staff of the FRSC to have knowledge of the workings of these fraudulent schemes and know how to avoid them.
It will also help them know the products available in the capital market and aid them in taking decisions of how to invest their funds wisely, he stated.
Mr Biu lamented that many Nigerians had lost huge sums of money to these Ponzi schemes as the operators approached victims with mouth-watering offers that were sometimes too difficult to resist.
But with programmes like these, Nigerians will be able to know the right investments and how to access such investments in the capital market, he added.
