Central Bank of Nigeria, CBN, is ramping up its public awareness campaign to prevent Nigerians from becoming victims.
This is in light of the continuous operation of illegal financial institutions and Ponzi schemes in Nigeria’s economy.
Furthermore, security agencies and other financial sector regulators are in collaboration in order to stem the flow of the unsound financial system.
Though the number of Nigerians who have used the CBN channels to avoid the attraction of Ponzi scheme purveyors is not instantly measurable, a Vanguard report has revealed that the apex bank’s efforts have resulted in the successful recovery and return of N95.2 billion to victims in 2021.
Ponzi schemes, also known as pyramid investments, are a type of financial fraud that entices investors with the promise of huge profits but typically fails to deliver, leaving investors with little money and the risk of losing their entire investment.
CBN has held multiple public seminars to educate the public on how to identify unlawful financial services providers.
It also took advantage of the opportunity to advise the investing public to check the websites of the Central Bank, the Securities and Exchange Commission (SEC), and other relevant member agencies of the apex bank’s Financial Services Regulation Coordinating Committee (FSRCC) before investing in illegal financial companies and schemes.
CBN, which raised the red flag earlier this month, has previously warned Nigerians to stay away from sellers of such dubious financial arrangements, which have led to the bankruptcy and early death of millions of Nigerians.
It established the FSRCC in April 1994 to facilitate a formal framework for the coordination of regulatory and supervisory activities in the Nigerian financial sector.
Read Also: 5 Ways To Easily Detect Ponzi Schemes
FSRCC’s mission is to address issues of common concern to regulatory and supervisory bodies more effectively through consultations and regular inter-agency meetings.
The apex bank has devised a strategy to eradicate Ponzi schemes in Nigeria while also educating Nigerians about the new digital currency, E-Naira.
CBN’s Director of Corporate Communications, Osita Nwanisobi, said the apex bank is doing everything within its powers to end the ugly trend called Ponzi scheme.
In one of the recent public sensitization efforts, he stated;
What CBN is doing today is to arrest the situation of Ponzi scheme in Nigeria.
The first thing we are doing is to sensitize Nigerians on the need to know that they are the first security to themselves.
When we sensitize you, you will know that there is no way someone would come to you to convince you that he/she has a product that can earn you 10% per month, which means 120% per annum and you would rush such business.
This sensitization would help you to know if such business is registered with the CBN or not by going to the CBN website to find out.
If it is an entity that is supposed to be regulated by the CBN, you will equally know.
Moreso, most of these people do not have licence from anywhere but they are just operating on their own.