Regrettably, while these are encouraging developments, the country’s investment climate has continued to witness an increase in illegal fund managers (Ponzi scheme). Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Karawusa added that the SEC management was determined to address head-on the menace and further proliferation of Ponzi schemes in Nigeria. A lot of people who invest in Ponzi scheme do so for lack of knowledge of basic economics or business common sense. The law is very stringent on requirements for operating collective investment schemes in Nigeria.

Source: The Guardian December 31, 2019 04:30 UTC