Gullible Nigerians are falling prey to the antics of Ponzi scheme/wonder bank operators, a development that has made regulators’ efforts at curbing the menace an exercise in futility, ABDULWAHAB ISA reports
They are back in numbers. They operate in disguise under various names. By Securities and Exchange Commission (SEC) conservative figure, three million Nigerians may have lost about N18 billion to wonder banks/ponzi scheme operators. Lamido Yuguda, Director-General, Securities and Exchange Commission, gave the rough estimate lost by gullible Nigerian investors to fast pace investment outlets sprouting across Nigeria. Between March 2021 when SEC boss gave total amount lost to wonder banks till date, the amount has leaped. On a daily basis, the media space is replete with stories of gullible Nigerians who fell into the trap of ponzi scheme operators and other contrived investment outlets. The victims ignore repeated warnings by finance regulatory bodies, Central Bank of Nigeria, SEC and Nigeria Deposit Insurance Corporation (NDIC) to desist from patronising ponzi schemes.
Proliferation of wonder banks
Crave for cheap, unsubstantiated income is the root cause of spiraling trend in ponzi schemes. Investment, the process of committing resources to projects for profit yielding is allowed. It’s in order as far as legitimacy of the investment is guaranteed by law. Buying shares in quoted firms, subscribing to bonds, investing in Treasury Bills etc are a form of…
