Professor Uche Uwaleke, a leading capital market expert, has called for the creation of a National Compensation Fund to provide relief to victims of Ponzi frauds, warning that the schemes pose a growing threat to citizens’ financial security.
Speaking at a virtual workshop on Sunday, Uwaleke, who also serves as President of the Capital Market Academics of Nigeria (CMAN), said the fund could be financed through regulatory fines. He stressed the urgency of curbing the spread of fraudulent schemes, which continue to attract unsuspecting investors across Nigeria.
The professor urged regulators including the National Broadcasting Commission (NBC) and the Nigerian Communications Commission (NCC) to ban advertisements of unlicensed investment platforms on traditional and digital media. He added that the Advertising Regulatory Council of Nigeria (ARCON) should ensure that all promotional materials for investment products receive clearance from a dedicated Financial Promotions Oversight Unit within the Securities and Exchange Commission (SEC).
To further protect the public, Uwaleke recommended coordinated nationwide financial literacy drives by the SEC and the Ministry of Information. He also demanded accountability for celebrities and influencers who promote illegal investment schemes, with mandatory disclaimers and penalties for breaches.
He called on the Central Bank of Nigeria (CBN) to instruct financial institutions to flag suspicious transactions tied to Ponzi schemes and report them to both the SEC and the Economic and Financial Crimes Commission (EFCC).
According to him, a joint task force involving the SEC, CBN, EFCC and the Nigerian Financial Intelligence Unit (NFIU), with real-time intelligence sharing, is essential for tackling the menace. He further advised social media platforms to restrict or remove fraudulent investment promotions not registered with the SEC.
