CBN pushes strategic communication against ponzi schemes
Against the backdrop of continued operation of illegal financial institutions and ponzi schemes in the Nigerian economy, the Central Bank of Nigeria, CBN, is intensifying its public awareness campaign to dissuade Nigerians from falling victim.
This comes in addition with collaboration with security agencies and other financial sector regulators to stem the tide of the unwholesome financial system. Though the results of these efforts are not immediately measurable in terms of number of Nigerians that have used the CBN channels to escape the lure of the ponzi scheme purveyors Vanguard learnt that the efforts of the apex bank have resulted in successful recovery and refund of N95.2billion to victims in 2021.
Ponzi schemes, also known as pyramid investments, are a form of financial fraud that lures investors with the promise of high returns but often ends up giving no returns at all, with a possible loss of investors’ total capital.
The apex bank has used its several public events to educate the general public on how to spot illegal financial services operators. It also used the occasions to advise the investing public to visit the websites of the Central Bank, Securities and Exchange Commission (SEC) and other relevant member agencies of the apex bank’s Financial Services Regulation Coordinating Committee (FSRCC) to verify the registration and licence status of illegal financial companies and schemes before investing in them.
The CBN, which raised the red flag earlier this month had similarly, in March, cautioned Nigerians to distance themselves from purveyors of such dubious financial deals which have sent thousands of Nigerians to bankruptcy and early graves. The CBN had in April 1994, undertook to facilitate a formal framework for the co-ordination of regulatory and supervisory activities in the Nigerian financial sector by establishing the FSRCC to address more effectively, through consultations and regular inter-agency meetings, issues of common concern to regulatory and supervisory bodies .
The apex bank has mapped out plans to end Ponzi Scheme in Nigeria, while sensitizing Nigerians on the new digital currency, E-Naira. The CBN’s Director of Corporate Communications, Mr 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.
