The Economic and Financial Crimes Commission (EFCC) Warns Nigerians About Illegal Ponzi Schemes
The Economic and Financial Crimes Commission (EFCC) has issued a warning to Nigerians regarding 58 companies allegedly running illegal Ponzi schemes across the country.
Ponzi schemes are fraudulent investment operations that promise substantial returns with little or no risk. These schemes rely on funds from new investors to pay returns to earlier ones, creating an illusion of profitability. However, once fresh investments cease, the scheme inevitably collapses, leaving most investors with significant financial losses.
In a statement shared on its official page, the EFCC revealed that these entities, which present themselves as investment platforms, have been swindling unsuspecting Nigerians out of their money. The anti-graft agency emphasised that none of these companies are accredited by the Central Bank of Nigeria (CBN) or the Securities and Exchange Commission (SEC).
The EFCC disclosed that legal action has been taken against several of the implicated companies.
The full list of companies accused of running illegal investment schemes are listed below:
- Wales Kingdom Capital
- Bethseida Group of Companies
- AQM Capital Limited
- Titan Multibusiness Investment Limited
- Brickwall Global Investment Limited
- Farmforte Limited & Agro Partnership Tech
- Green Eagles Agribusiness Solution Limited
- Richfield Multiconcepts Limited
- Forte Asset Management Limited
- Biss Networks Nigeria Limited
The EFCC reaffirmed its commitment to protecting Nigerians from fraudulent financial operations and stated, “The EFCC assures the public of its vigilance and proactive monitoring of every entity and player in the nation’s economic space to safeguard the public from opportunistic and predatory operators and use the instrumentality of its anti-corruption mandate to stimulate growth in the economy.”
Meanwhile, the Nigerian Securities and Exchange Commission (SEC) has intensified efforts to clamp down on Ponzi schemes. In December 2024, the Senate passed the Investments and Securities Repeal and Re-enactment Bill, which introduces stricter penalties for fraudulent investment schemes. The legislation prescribes a 10-year prison sentence and fines of up to N20 million (approximately $12,000) to deter fraudulent financial activities.
