The Economic and Financial Crimes Commission has raised the alarm over the activities of 58 companies allegedly running illegal Ponzi schemes across Nigeria. In a public alert issued via its official X page, the EFCC disclosed that these entities masquerade as legitimate investment platforms but defraud unsuspecting Nigerians of their hard-earned money.
According to the commission, neither the Central Bank of Nigeria nor the Securities and Exchange Commission has accredited these firms, warning the public to steer clear of them. The EFCC stressed that these Ponzi schemes operate by using funds from new investors to pay older ones, ultimately collapsing when fresh investments dry up.
The anti-graft agency also revealed that legal action has been taken against several of the implicated firms. The commission noted that it had already prosecuted some of these companies, with five securing convictions, while another five had pleaded guilty and were awaiting further legal proceedings.
A long list of the allegedly fraudulent firms was provided, including Wales Kingdom Capital, Bethseida Group of Companies, AQM Capital Limited, and Titan Multibusiness Investment Limited. Others named include Green Eagles Agribusiness Solution Limited, Cititrust Credit Limited, Farm4Me Agriculture Limited, and Oxford International Group. The EFCC vowed to continue its crackdown on unregistered investment platforms that exploit the public.
In a related development, the EFCC’s Kaduna Zonal Directorate arrested 28 individuals in Minna, Niger State, over their involvement in a suspected Ponzi scheme linked to Q-Net Ltd. The suspects allegedly lured victims with claims of international affiliations in Dubai, India, Indonesia, and Thailand, convincing them to pay registration fees ranging from $790 to $850, amounting to about N1.46 million.
The commission recovered Q-Net application forms and other incriminating documents, stating that the suspects would be arraigned once investigations were concluded. The EFCC reiterated its commitment to shielding Nigerians from fraudulent investment operations.
Meanwhile, the Securities and Exchange Commission has intensified efforts to combat Ponzi schemes following the Senate’s passage of the Investments and Securities Repeal and Re-enactment Bill, 2024. The new legislation introduces stricter penalties, including a 10-year prison sentence and fines of up to N20 million for operators of illegal investment schemes.
The EFCC reaffirmed its commitment to vigilance and proactive monitoring to safeguard the financial interests of Nigerians while urging the public to exercise caution when engaging in investment opportunities.