The Director General of the Securities and Exchange Commission (SEC), Lamido Yuguda, has declared that Ponzi schemes are cancerous to the capital market and the commission is moving swiftly to eliminate its operations.
The SEC DG, said we are collaborating with other government agencies in waging a serious war against Ponzi schemes, and been engaging and alerting Nigerians on the need to only deal with operators that are registered with the Commission.
According to the SEC Boss “these collaborations are very important because Ponzi schemes are cancers to the capital market, a lot of money has been lost and it is unacceptable to continue to have this kind of investment losses by people.
“In terms of the synergy between the Commission and the law enforcement on the fight against Ponzi schemes, I can say that there is very good harmony between the SEC and the law enforcement agencies.
It is worthy to mention that we at SEC work with the Nigerian Police, the Nigerian Financial Intelligence Unit and the EFCC to reduce atrocities committed by Ponzi schemes and fight against money laundry.
“We have stepped up enlightenment on Ponzi schemes to ensure the message gets to the street while also working with various state government, local government and different agencies of government including non-governmental organizations to make sure that the message gets to the nooks and crannies of our country.
Yuguda emphasized that “it is not very difficult to identify a Ponzi scheme as they usually promise unreasonably high returns just to lure people. We have a list of the existing Ponzi scheme and we would soon catch up with them
He reiterated the Commission’s commitment to continue to strive and fulfil its mandate of protecting investors and creating an enabling environment for market operations.