The Economic and Financial Crimes Commission (EFCC) has issued a strong warning to Nigerians, revealing that 58 companies are allegedly operating illegal Ponzi schemes across the country.
Ponzi schemes lure investors by promising high returns with little risk, but they operate by using money from new investors to pay off earlier ones.
Once new investments stop, the scheme collapses, leaving most investors with significant losses.
In a statement posted on its official X page, the EFCC disclosed that these fraudulent companies, disguising themselves as investment platforms, have been swindling unsuspecting Nigerians out of their hard-earned money.
The Commission further revealed that neither the Central Bank of Nigeria (CBN) nor the Securities and Exchange Commission (SEC) has accredited these firms.
The EFCC stated, “The Economic and Financial Crimes Commission, EFCC, hereby alerts Nigerians on the operations of 58 companies posturing as investing entities and defrauding innocent Nigerians of their hard-earned money.”
Furthermore, the Commission emphasized that, “The companies are neither registered with the Central Bank of Nigeria, CBN, nor the Securities and Exchange Commission, SEC.
The two regulators, in separate correspondences with the EFCC, denied that they are registered with them.”
The EFCC has taken legal action against several of the implicated firms.
According to the agency, “The Commission has charged many of the companies to court, with five of them convicted, another five pleaded guilty but awaiting review of facts, while the rest are pending arraignment.”
es Kingdom Capital, Bethseida Group of Companies, AQM Capital Limited, Titan Multibusiness Investment Limited, and Brickwall Global Investment Limited.
Other firms include Farmforte Limited & Agro Partnership Tech, Green Eagles Agribusiness Solution Limited, and Richfield Multiconcepts Limited.
Additional names on the list include Crowdyvest Limited, Adeeva Capital Limited, Oxford International Group, MBA Trading & Capital Investment Limited, and Rockstar Establishment Limited.
More businesses were also flagged, such as Farm Sponsors Limited, Cititrust Credit Limited, and Adamakin Investment & Works Limited.
This development serves as a crucial warning for Nigerians to be vigilant about where they invest their money.
Many individuals have fallen victim to fraudulent schemes that promise unrealistic returns but ultimately collapse, leading to financial ruin.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, emphasized the risks involved in investing in unregulated entities.
“Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre,” he stated.
Meanwhile, the EFCC reassured the public of its commitment to safeguarding the economy from fraudulent investment platforms.
“The EFCC assures the public of its vigilance and proactive monitoring of every entity and player in the nation’s economic space to safeguard the public from opportunistic and predatory operators and use the instrumentality of its anti-corruption mandate to stimulate growth in the economy.”
To verify a company’s legitimacy, investors are encouraged to check with the CBN and SEC before committing their funds.
Additionally, individuals should seek financial advice from reputable sources to avoid falling victim to Ponzi schemes.
