The Central Bank of Nigeria (CBN) has advised members of the public to visit its website, alongside those of the Securities and Exchange Commission (SEC) and other relevant member agencies of the Financial Services Regulation Coordinating Committee (FSRCC) to verify the registration and license status of investment companies before committing their money to them.
CBN gave out this counsel, as it warned members of the public to resist dealing with unlicensed or illegal financial operators who lure and defraud people with promises of outrageous returns.
In FSRCC’s public statement advisory on illegal financial operators in Nigeria posted on its website, CBN stated: “The FSRCC wishes to draw the attention of the general public to the worrisome increase in the activities of the Illegal Financial Operators which portend grave risk to public confidence and the stability of the Nigerian Financial System.
“The FSRCC in its continuing efforts to end the scourge of IFOs in Nigeria, hereby issues the following advisory:
“The general public is advised to refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extra-ordinary returns on investments as bait.”
“You are also advised to report any individual or entities suspected to be involved in such nefarious activities to the law enforcement agencies.
“Financial regulatory agencies shall continue to carry out all necessary due diligence before registering/licensing any operator under their regulatory purview,” the statement added.
BizWatch Nigeria understands that CBN gave this advise and warning, a few weeks after SEC sealed the premises of Oxford International Group/Oxford Commercial Services, Farmforte Agro-Allied Solutions Limited/Agro Partnerships as well as Vektr Capital Investment/Vektr Enterprise for illegally engaging in capital market activities.
According to SEC, the offices of the companies in Lagos, Port Harcourt, and Abuja were shut down for carrying out investment operations that fall within the ambit of fund management without registration with the apex regulator contrary to the provisions of the Investments and Securities Act 2007.
