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Investments: SEC urges young Nigerians to shun ‘Ponzi schemes’

*The Securities and Exchange Commission urges Nigerian young population shun fraudulent activities such as ‘Ponzi scheme’ but take advantage of various investment products that could appeal to them to plan, save and invest in the Capital market in the West African country

Alexander Davis | ConsumerConnect

The Securities and Exchange Commission (SEC) has urged the Nigerian youths to be mindful of fraudulent activities, such as ‘Ponzi scheme’ that can mar the growth of their financial future.

Nestor Ikeagu, Director of Market Development Department of SEC, stated this during the celebration of the Global Money Week 2023 enlightenment campaign in Gwagwalada, Abuja, FCT.

ConsumerConnect reports the country’s Capital market regulator, in regard to its recent campaign to create awareness among the young population, is making further effort at attracting them to the equity market.

The Commission also advised the youths to ensure that they invest with firms that are registered with SEC.

On Global Money Week

The Global Money Week is an annual global awareness-raising campaign on the importance of ensuring that young people from an early age are financially aware, and are gradually acquiring the knowledge, skills, attitudes, and behaviours necessary to make sound financial decisions, and ultimately, achieve financial well-being and financial resilience.

Ikeagu also said that the official theme for Global Money Week 2023, “Plan your money, plant your future”, focused on sustainability and raising awareness on the implications of individual financial behaviour not only on one’s financial future but also on the environment and the entire society.

The Director of Market Development Department further noted there are various investment products available in the Capital market that could appeal to the youths.

He, therefore, encouraged them to plan, save and invest in the Capital market.

“It is also important to educate these young minds that as they plant their future, they should be mindful of some fraudulent activities such as ‘Ponzi scheme’, that can mar the growth of their financial future.

“A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors.

“It is a fraudulent investing scam that generates returns for earlier investors with money taken from later investors. It involves paying existing investors in a non-existing enterprise with the funds collected from new investors,” said Ikeagu.

The SEC Directory as well disclosed there is a list of registered fund managers on the Web site of Commission, and urged members of the public to always cross-check that entities are registered for the products they are offering to the public.

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