By Ayodele Abere
Endorsement of Ponzi Schemes by celebrities and other promoters should be treated as a criminal offence in Nigeria.
Vice Chancellor, Ayodele and Professor Adaramola
This was part of the recommendations made by Professor Anthony Olugbenga Adaramola, on Wednesday while delivering the 92nd Inaugural lecture of the Ekiti State University EKSU, Ado-Ekiti, at the University main auditorium titled: “Greed, Lies And Financial Ruin: The Ponzi Schemes Legacies “.
The Professor of Finance and Investment Management hinged this recommendation on the fact that the public, especially the youths see the actions of the celebrities as an endorsement of the legitimacy of Ponzi Schemes.
The Financial expert explained that most times, Ponzi Schemes are not registered or licensed by government agencies as they are owned by some faceless individuals, adding that the Schemes are characteristically based on ambiguous model that is not easily understandable.
“This is because the promoters would like to refer to their venture as investment rather than Ponzi. Common with such Schemes is the constant use of high business and investment languages that mesmerize potential subscribers to ensure they do not know what the business model is actually”, said he.
Speaking on the effect of Ponzi Schemes, the Inaugural Lecturer, who noted that there are several Ponzi Schemes in Nigeria, said the number is growing daily. Saying some now disguise as online investment platforms.
According to him, Ponzi Schemes became popular in Nigeria with unforgettable and monumental crash of the infamous MMM Scheme in 2016. He cited CBEX which was recently believed to be a legimate investment platform by many Nigerians turned out to be another Ponzi Schemes which left many Nigerians broken and bankrupt.
Noting that a greater percentage are still willing to go the way of Ponzi investment without minding the risk and cost associated with their actions, Professor Anthony Olugbenga Adaramola among other recommendations therefore urged regulators of Financial markets to ensure that all information in the markets are correct and timely.
Adding that Laws to protect investors and guard against manipulation of information in Nigeria Financial markets should be promulgated and enforced.
In his remark, the Vice Chancellor, Professor Joseph Babatola Ayodele hailed the Inaugural Lecturer, saying the lecture has been painstakingly delivered. He therefore called on Nigerians to beware of Ponzi Schemes investment.
