Oluropo Dada, president and chairman of the Chartered Institute of Stockbrokers (CIS), warned that unregistered investments in Nigeria’s capital market are Ponzi schemes aimed at defrauding investors.
This follows the collapse of digital platform CBEX, which reportedly caused over N1.3 trillion in losses. Speaking at the CIS’s 30th Annual General Meeting in Lagos, Dada urged investors to avoid unregistered platforms promising quick, guaranteed returns, as these are fraudulent.
He emphasized that legitimate investments are registered with the Securities and Exchange Commission (SEC), and unregistered schemes often promise unrealistic, risk-free profits. The SEC has intensified its campaign against Ponzi schemes, urging the public to steer clear of such platforms.
Dada also reviewed CIS’s 2024 activities, highlighting efforts to attract young people to the securities profession through partnerships with tertiary institutions.
The “Catch them Young” initiative is gaining momentum, and an ongoing review of the institute’s Professional Diploma Programme will enable more youths, regardless of financial background, to pursue careers in the securities market.
Collaborations with universities to offer degree and postgraduate programs in securities and investment studies are also underway to boost youth participation.
WHAT YOU SHOULD KNOW
This highlights a critical issue in Nigeria’s financial landscape: the prevalence of Ponzi schemes and the urgent need to protect investors.
Oluropo Dada’s warning, delivered at the CIS’s 30th AGM, serves as a clarion call for vigilance, emphasizing the role of regulation and education in safeguarding the public.
Simultaneously, the CIS’s efforts to engage youths and expand professional training demonstrate a commitment to building a robust and sustainable securities industry.
ALSO READ TOP STORIES FROM VERILY NEWS
