SEC Takes Anti-Ponzi Scheme Campaign to Abuja Markets
By Patience Ikpeme
In an effort to shield more Nigerians from the devastating impact of Ponzi schemes, the Securities and Exchange Commission (SEC) conducted a sensitization campaign at Wuse Market, a bustling commercial hub in the heart of Abuja, on Friday.
The SEC team, spearheaded by its Director General, Dr. Emomotimi Agama, actively engaged traders, distributing informative flyers and raising awareness about the significant risks associated with investing in unregulated investment platforms. A key aspect of the campaign involved advising market participants on the crucial step of verifying any investment opportunity directly with the Commission before committing their funds.
Speaking to members of the press following the outreach, Dr. Agama explained that this initiative forms part of the SEC’s ongoing and proactive measures to safeguard Nigerian citizens from fraudulent investment schemes.
He drew attention to the staggering losses Nigerians have collectively suffered, citing the over $1.3 trillion lost to the collapsed CBEX Ponzi scheme as a stark reminder of the urgent need for increased public awareness.
“It is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC,” Dr. Agama stated.
He expressed satisfaction with the engagement, noting, “We are happy that we have come out here to inform them and more importantly, they are now being enlightened to the effect that if it is too good to be true then it is not good, certainly it is not true.
They encouraged us to come back again on this journey and we have also encouraged them to inform more people all around them about the dangers of Ponzi schemes. We believe strongly that by this action, a lot of people would be free from ponzi scheme scams.”
Dr. Agama elaborated on the strategic decision to take the campaign to the market, saying, “We decided to do this sensitization to the market because we discovered that it is difficult for people to get the information that will protect them. Sitting in our offices and requiring them to go to our websites and getting to us through the telephone may not be the best way; we needed to come out to let them know the dangers of a ponzi scheme.”
Painting a vivid picture of the potential devastation caused by Ponzi schemes, Dr. Agama warned, “The danger is real. You could lose all your money. You could fall into ill health from the stress. When that happens, you risk destroying your family, your foundation, your business, even your nation.”
He conveyed the Commission’s resolute determination to eradicate Ponzi schemes and all other illegal investment platforms from the Nigerian financial landscape.
“President Bola Ahmed Tinubu has signed into law the new ISA 2025. Now, anyone involved in Ponzi schemes—whether influencers, bloggers, accomplices, or anyone else—faces a 20 million naira fine and up to 10 years in jail,” Dr. Agama announced.
He affirmed the SEC’s commitment to widespread outreach, stating, “We will not stop here. We will go to every market we can reach—every nook and cranny of this country. We will visit churches, mosques, hospitals, even the navy. We want everyone to hear this message.”
Offering a message of hope and empowerment, Dr. Agama said, “It is never too late. When you wake up, that is your morning. Now that you are educated, you can protect yourselves and others. Ponzi schemes are a global problem, but together, we can fight them here.”
He concluded by stating, “The SEC of today is reaching out like never before. We will continue to do this, but we need your help to spread the information. Together, we will be better off.”
Also speaking during the sensitization campaign, the Executive Commissioner Legal and Enforcement of the SEC, Ms. Frana Chukwuogor, urged the traders to avoid schemes that promise unrealistically high returns, clarifying that these are designed to defraud unsuspecting Nigerians.
“Ponzi schemes are illegal investment behaviors that build on nothing. We need to enlighten Nigerians about the dangers of Ponzi and we think going all out to enlighten women will make our job easier,” Ms. Chukwuogor stated.
She added that the Commission’s presence in Wuse Market was to empower investors with the resources available at the SEC to enhance their protection. “We want to strengthen investors in their knowledge and understanding of the capital market, we want people to invest, but they should verify with SEC first,” she advised.
During the campaign, several traders shared their personal experiences with the now-collapsed CBEX platform, illustrating the devastating impact of such fraudulent schemes.
Chijioke Nnodim, a trader in the market, attributed the losses to greed. “Greedy people lost their money. Some people paid N20 million, some people paid N15 million, one woman N10 million. She owes her workers now. People don’t even know where to find the operators again.” He urged Nigerians to be more cautious and learn from the experiences of others before investing their money.
Another trader, Abraham Onojie, recounted his initial positive experience with CBEX, which lured him into investing more significant sums. “When they came to me, I said let me give it a try and I invested N2 million, after one week, they paid me N2,450,000. I felt like it was real. My neighbor went and invested N20 million. And after 7 days, they paid him N27 million. They will bring live chicken; they will bring a crate of eggs. Not until I went and invested N7 million. The days I invested my money I travelled, I was in my home town when they called me that those people could not be found.” He cautioned Nigerians to be wary of individuals offering investment opportunities and to avoid listening to them blindly to prevent similar losses.
