Securities and Exchange Commission (SEC) has described Ponzi schemes as a threat to investors, an orderly financial market and the overall economy.
Lamido Yuguda, the director-general of SEC, stated at the opening of a two-day webinar organised by the Attorney General Alliance-Africa in collaboration with the commission, on Tuesday.
Yuguda said the devastating impact of COVID-19 on the economy, the low-interest-rate environment, coupled with the increased use of online services to interact and transact have encouraged the proliferation of Ponzi schemes.
He said Ponzi schemes operators have capitalised on the harsh economic climate to offer unrealistic returns on investment to unsuspecting investors. These illegal schemes have also been able to solicit new investors and expand their operations through the increased use of online services.
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Yuguda, however, stated that SEC has a statutory duty to promote investor education and train persons in the capital market, adding that the programme was organised in furtherance of that statutory mandate.
According to him, “This capacity building programme will afford participants the opportunity to learn contemporary and innovative ways of combating and curbing the menace of Ponzi schemes in Nigeria.
“I believe the knowledge gathered from this programme will provide participants new ways of approaching, assessing and tackling the growing problem of Ponzi Schemes”.
He described the focus of the programme as apt, and its organisation timely, in view of the contemporary challenges confronting the Nigerian financial sector and its regulators, by the activities of Ponzi schemes.
