…Commission Warns Greed, Ignorance Fuelling Financial Fraud
…MMM, Nospecto, Others Top List Of Failed Schemes
…Victims Include Women Who Sold Homes, Cars To Invest
Daud Olatunji
The Securities and Exchange Commission has raised fresh alarm over the rising wave of Ponzi schemes in Nigeria, revealing that desperate and unsuspecting citizens have lost more than N316bn to fraudulent fund managers in recent years.
The Commission warned that the nation remains dangerously exposed to illicit financial operators, blaming greed, ignorance, and poor due diligence among investors for the continued success of the fraud rings.
Speaking at a media training programme in Abuja, the Head of SEC’s FinTech and Innovation Department, AbdulRasheed Dan-Abu, said the appetite for “quick wealth without work” has continued to fuel the scam industry.
“These schemes are not really doing anything. They are just collecting people’s money and using it to pay the initial investors,” he explained. “At some point, when there are no new investors, the whole thing crashes and the operators disappear.”
Dan-Abu lamented that education has failed to curb financial gullibility in the country.
“Education has not stopped greed. Everybody just wants to get rich today. That is actually what makes people fall into this trap,” he said. “Even the people who are greedy now are more educated than those who experienced Charles Ponzi’s first scheme.”
The SEC official recalled how many victims of the controversial MMM platform returned to reinvest even after losing their savings in 2016.
“Even after MMM shut down, they came back and told people that if you pay a certain amount, you will get access to your lost money. People still paid. That shows you how greed blinds people.”
He also cited a devastating scam targeting rural women under the guise of empowerment.
“In the case of New Nation, Women in Oil, many sold their houses and cars to invest because they believed it was real,” he said. “It tells you how dangerous this thing is when people do not ask questions.”
A breakdown provided by the SEC showed staggering losses from various collapsed schemes, including: N18bn — MMM Nigeria; N106.9bn — Nospecto Oil & Gas and wonder banks ;Over N7bn — Galaxy Construction & Transportation ; N3.5bn — Bara Finance ;N2.5bn — Famzi Intbiz ;N1.2bn to N2bn — Dantata Success & Prof Company ;N900m — Yuan Dong ; N400m each — G-Circle Investment & Box Value Trading ;N235m — Now-Now Alert ; N100m each — Cow Lane & Durrell Nigeria Ltd ; and Over N174bn – largest ongoing investigated case.
Dan-Abu noted that the figures exclude the controversial CBEX crypto scheme, alleged to have stolen more than N1.3tn from Nigerians.
He urged Nigerians to reject investment platforms that promise unrealistic rewards.
“They promise high returns with little or no risk. But there is no business in the world where you can make a lot of money in a short time without risk.”
“Anytime you see an investment that looks new, the first thing you should do is ask if it is registered with the SEC. It is your sweat, your hard-earned money. If it is not registered, it is already illegal.”
Dan-Abu tasked journalists to join the war against financial deception.
“If you write about this once a week, you could save thousands of people. Tomorrow, it might be your son, your cousin or your neighbour.”
In her remarks, SEC spokesperson Efe Ebelo, representing the Director-General Dr Emomotimi Agama, said rising digital financial systems must be regulated — not demonised.
“Regulation is not about restriction; it is about building trust. Digital assets are no longer a fringe experiment but a structural pillar of modern finance.”
She disclosed that the SEC is collaborating with the CBN and EFCC to trace illegal funds and freeze criminal crypto accounts.
“Clamp down too hard and innovation migrates offshore; regulate too softly and systemic risks multiply. In this new frontier of finance, trust is the ultimate currency and our duty is to preserve it.”
'
'Do you want to share a story with us? Do you want to advertise with us? Do you need publicity for a product, service, or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com
We are committed to impactful investigative journalism for human interest and social justice. Your donation will help us tell more stories. Kindly donate any amount HERE
