Abuja: Capital Market, Uche Uwaleke, has called for the establishment of a National Compensation Fund to assist victims of proven Ponzi frauds. Uwaleke, also the President, Capital Market Academics of Nigeria (CMAN), made the call at a virtual workshop on Ponzi schemes in Abuja.

According to News Agency of Nigeria, Uwaleke suggested that the fund can be sourced partly from regulatory fines. He expressed concerns about the growing effect of Ponzi schemes on citizens and called for urgent actions to curb the menace. Uwaleke urged the National Broadcasting Commission (NBC) and Nigerian Communications Commission (NCC) to prohibit media outlets, telecom operators, and online platforms from running advertisements or promotions of unlicensed investment schemes, with penalties for violations.

The expert proposed that the Advertising Regulatory Council of Nigeria (ARCON) and NBC require advertising clearance for all investment schemes from a Financial Promotions Oversight Unit within the Securities and Exchange Commission (SEC). Uwaleke emphasized that SEC, in partnership with the Federal Ministry of Information and National Orientation, must consciously embark on continuous nationwide financial literacy campaigns, warning citizens against Ponzi and pyramid schemes.

He further advocated for holding influencers and celebrities legally liable for endorsing unlicensed investment platforms and introducing endorsement disclaimers with penalties for non-compliance. Uwaleke also suggested mandating the Central Bank of Nigeria (CBN) to require banks and payment platforms to flag unusual transaction patterns linked to suspected Ponzi schemes and report suspected schemes to SEC and Economic and Financial Crimes Commission (EFCC).

Additionally, Uwaleke called for the establishment of a joint task force comprising SEC, CBN, EFCC, Nigerian Financial Intelligence Unit (NFIU) with a dedicated budget and a real-time intelligence-sharing platform.