By Obas Esiedesa. Abuja

The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama has warned that obtaining registration from the Corporate Affairs Commission and SCUML certificate from the Economic and Financial Crimes Commission do not confer on any entity the power to operate an investment scheme in Nigeria.

Agama insisted that every investment scheme must be registered by the Commission for it to operate legally in the country.

He therefore warned Nigerians to beware of firms that claim that the registration of their companies with the Corporate Affairs Commission and SCUML certificate from the EFCC have empowered them to operate investment schemes in Nigeria.

Agama who stated this on Wednesday in Abuja said it was disheartening that some Nigerians and foreign companies have specialised in defrauding Nigerians through Ponzi Schemes, adding that the government will no longer sit back and watch billions of naira taken away from the people through ponzi schemes.

He said it is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC.

“It is disheartening that some Nigerians and foreign companions have specialised in duping Nigerians and the government won’t sit and watch Nigerians being duped and this is what SEC is coming out to the people to educate them that if it is too good to be true, then watch out.

“We have seen many Ponzi schemes in the past, and the Investments and Securities Act has been signed into law by the President and the law recommends a N20 million fine and 10 years imprisonment for offenders of Ponzi Schemes.

“So, that has empowered us to be in a better position to flush out all these fraudulent investment schemes that are damaging our economy. We are using this sensitisation outreach to bring information to our people, and that is why we are here and telling them that we are here to assist them to confirm legitimate investment schemes, and we are letting them know we feel their pain.

“As we are doing this, we have helped to educate them against being duped. CAC registration and EFCC certificate are not enough to show that the company is registered with SE,C and these are red flags. Training programmes being organised by these people to lure people into their schemes are also illegal. Verify before you invest in any scheme, and that is our message to Nigerians.”

Also speaking to journalists, the Assistant Director, Enforcement Department, SEC, Tope Onwionoko, said the management of the Commission is very passionate about financial literacy, especially with respect to Ponzi schemes that has become a scourge in the society of late.