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Director-General of the Securities and Exchange Commission, Mr. Lamido Yuguda has revealed that Ponzi schemes are a threat to the protection of investors and an orderly financial market.
He stated this during a two-day webinar by the Attorney General Alliance-Africa and SEC on Tuesday.
Yuguda however stated that the SEC has a statutory duty to promote investor education and the training of persons in the capital market, saying that the programme is organized in furtherance of that statutory mandate.
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‘The pervasiveness of Ponzi schemes undermines regulatory efforts in developing the capital market, and also negatively impacts investor confidence.
‘The schemes operate with unsustainable operating models that ultimately lead to huge losses for investors.
‘Following the collapse of the MMM Ponzi scheme, the Nigerian Deposit Insurance Corporation (NDIC) had estimated that over 3 million Nigerians lost about N18 billion. Several other illegal investment schemes have cost Nigerians their assets and life savings,’ said Yuguda.
AFRICA DAILY NEWS, NEW YORK