The Economic and Financial Crimes Commission (EFCC) has listed 58 companies in Nigeria allegedly posing as investment entities but are actually running illegal Ponzi schemes, according to the anti-graft agency.

The latest EFCC’s alert comes amid a surge in fraudulent investment schemes in Nigeria, with regulators stepping up efforts to crack down on such activities.

According to the EFCC, these companies, which include Wales Kingdom Capital and Bethsaida Group of Companies, are neither registered with the Central Bank of Nigeria (CBN) nor the Securities and Exchange Commission (SEC), making their operations illegal.

Ponzi schemes have become a significant concern in Nigeria, particularly since the country’s economic recession in 2016. These schemes often promise unusually high returns to lure investors, only to collapse, leaving many with substantial financial losses. The proliferation of such schemes has been linked to economic hardship and the desire for quick financial gains.

The EFCC’s latest alert lists 58 companies that are allegedly operating illegally. These companies have been accused of defrauding innocent Nigerians by promising unrealistic investment returns.

The EFCC says it has taken legal action against many of these entities, with five convictions secured and another five awaiting judicial review. Several cases are still pending arraignment.

The EFCC, established in 2003, is Nigeria’s primary agency for combating financial crimes, including Ponzi schemes. The commission’s mandate includes investigating and prosecuting financial crimes, as well as coordinating with other regulatory bodies to ensure compliance with economic and financial laws. In recent years, the EFCC has intensified its efforts to combat Ponzi schemes, recognizing them as a major threat to Nigeria’s financial stability.

EFCC’s list of 58 illegal ponzi schemes

According to EFCC, the 58 flagged companies are: 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 Agricbusiness Solution Limited, Richfield Multiconcepts Limited, Forte Asset Management Limited, Biss Networks Nigeria Limited, S Mobile Netzone Limited, Pristine Mobile Network, Letsfarm Integrated Services, Bara Finance & Investment Limited, Vicampro Farms Limited, Brooks Network Limited, and Gas Station Supply Services Limited.

Other companies on the list include Brass & Books Limited, Annexation Biz Concept & Maitanbuwal Global Ventures, Crowdyvest Limited, Jadek Agro Connect Limited, Adeeva Capital Limited, Oxford International Group, Skapomah Global Limited, and MBA Trading & Capital Investment Limited.

In Nigeria, the CBN and SEC are the primary regulators of financial activities. Any investment company must be registered with these bodies to operate legally.

The EFCC says it works closely with these regulators to identify and prosecute illegal operators. The lack of registration with these bodies is a clear indication of the illegality of these Ponzi schemes.

Ponzi schemes not only cause financial losses to individuals but also undermine trust in Nigeria’s financial system. They divert resources away from legitimate investments, hindering economic growth and development.

The EFCC’s efforts to combat these schemes are part of a broader strategy to protect the public and stimulate economic growth by ensuring a safe and transparent financial environment.

“The EFCC remains vigilant in monitoring economic actors to protect Nigerians from predatory operators,” says the commission.

The EFCC has emphasized the importance of public awareness and vigilance in combating Ponzi schemes. The anti-graft agency advised Nigerians to be cautious of investment opportunities that promise unusually high returns with little risk. The Commission encourages the public to report any suspicious activities to help in the fight against financial crimes.

Article edited by Yusuf Balogun.