Regulatory bodies launch central depositary system to combat nationwide Ponzi scheme menace

The Securities and Exchange Commission has partnered with the National Youth Service Corps to launch a Community Development Service group, with a focus on educating corps members about investments, as outlined in a recently signed Memorandum of Understanding. This initiative aims to educate young Nigerians about the risks associated with fraudulent investment schemes and promote legitimate investment practices.

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The Memorandum of Understanding was signed by the Director-General of the SEC, Dr Emomotimi Agama, and the Director-General of the NYSC, Brig.-Gen. Olakunle Nafiu, according to a statement issued by the SEC on Sunday.

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The collaboration seeks to promote financial literacy and sound investment habits among young Nigerians, while also equipping corps members with the knowledge and skills necessary to identify and avoid Ponzi schemes and other illegal investment practices.

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The partnership also aims to enhance public awareness campaigns against illegal financial schemes across all Local Government Areas in the country, among other objectives, by providing essential knowledge and skills to corps members.

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As part of the collaboration, the SEC will develop and provide relevant educational content, materials, and training modules on capital market operations, safe investment practices, and the identification and avoidance of Ponzi schemes.

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The SEC will also be responsible for the content, resources, and funding of training sessions for selected corps members and NYSC supervisors who will serve as trainers and facilitators in their respective communities.

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The NYSC will facilitate the integration of anti-Ponzi scheme education into its Education and Enlightenment CDS programme, which may involve dedicated sessions, workshops, or awareness campaigns during orientation camps and throughout the service year.

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The parties will collaborate on joint awareness campaigns, utilising various channels and platforms, including social media, traditional media, and community outreach, to disseminate information on safe investment and expose fraudulent schemes.

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They will also agree on mechanisms for sharing relevant data and reporting on the progress and impact of the collaborative initiatives, to ensure the success of the partnership.

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During the signing of the MoU, Agama recalled that the commission had been supporting the NYSC scheme by providing opportunities to hundreds of corps members to serve in the commission, demonstrating management’s commitment to the scheme’s success.

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Agama clarified that the SEC has NYSC members in the range of 160-180, which he believes shows the commission's commitment to the NYSC scheme and its potential to train them for the market, the nation, and themselves.

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He noted that every corps member who has gone through the NYSC scheme at the SEC has had a positive experience, and they are considered as staff of the SEC, not just individuals, but people the commission believes in and trusts.

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In his remarks, the NYSC Director-General commended the SEC boss for making the signing of the MoU a reality, saying that the deal represents a Key Performance Index for both organisations, and acknowledged the initiatives being undertaken by the commission’s leadership.

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Nafiu noted that it is good to educate corps members about investments at a young age, so they won’t patronise Ponzi schemes, and assured that the NYSC remains committed to executing the terms of the MoU to the betterment of the larger Nigerian society.

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Nafiu expressed his optimism about the partnership, saying, “We believe it’s the beginning of great things to come,” and assured that the NYSC will commit to every process to execute the terms of the MoU.