Nigerians Lose N316 Billion to Ponzi Schemes, SEC Reveals
The Nigerian Securities and Exchange Commission (SEC) has disclosed that citizens lost approximately N316 billion to Ponzi schemes. Abdul Rasheed Dan-Abu, Head of FinTech and Innovation at the SEC, highlighted the issue during a training session for finance journalists in Abuja.
Ponzi schemes, which pay returns to early investors using funds from new participants rather than legitimate profits, continue to thrive due to rampant greed and the pursuit of quick wealth. "Even educated individuals fall victim," Dan-Abu noted, emphasizing that financial literacy alone cannot curb human avarice.
Historical schemes offering unrealistic returns—some as high as 30% monthly—have collapsed, yet new victims emerge. The SEC warns that these fraudulent operations inevitably crumble once recruitment stalls, leaving investors empty-handed.
