HomeBusinessSEC Recommends Nigerians to Conduct Due Diligence Before Investing in Any Funds

SEC Recommends Nigerians to Conduct Due Diligence Before Investing in Any Funds

Before investing in investment funds, Nigerians should conduct due diligence on them using the Securities and Exchange Commission’s (SEC) capital market operators portal on its website.

During a webinar on Friday, SEC Director-General Mr Lamido Yuguda told journalists that in order to effectively combat Ponzi scheme fraud, investors must conduct their own research.

The commission’s website, he claims, offers a list of registered and reputable operators.

“Ponzi schemes are certainly a major challenge for our economy,” Yuguda remarked. It is so frequent that many of our citizens have lost a significant amount of money as a result of these schemes.

The commission has taken a number of steps, including publishing a list of authorized capital market operators on our website, which any interested investor can check to see if the fund they want to invest in is properly registered.

Read also: Quality Infrastructure is Essential for Sealing Leaks in the Oil and Gas Industry.

“Unfortunately, many of these Ponzi operators, once they make these mouthwatering promises, gullible investors put their money there and they unfortunately lose,” says the commission. Then they come to us to file a complaint, but you can check if they are legitimate in only two minutes on the SEC capital market operator portal.”

According to Yuguda, the commission has held discussions with the National Insurance Commission about de-risking and insuring specific commodity assets as part of initiatives to deepen the commodities ecosystem.

He said a technical committee made up of representatives from the SEC, the Nigerian Standards Organization, AFEX, the Lagos Commodities and Futures Exchange, and the Nigerian Commodities Exchange had been formed to develop agro-based standards in three months.

The commission has also asked the National Bureau of Statistics for help in developing an effective price discovery system for the commodities ecosystem. For this aim, a technical committee has been formed with the mission of creating modalities for the exercise,” he added.

He stated that the commission recognized the importance of the capital market in the long-term financing of infrastructure in the country.

He stated that the SEC would continue to work with key stakeholders to unlock the use of capital market tools in supporting vital infrastructure requirements, particularly in the areas of roads, housing, and renewable energy.

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