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Greedy Nigerians fall victims of Ponzi schemes- Financial experts

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Ponzi Schemes, easy money promised through an elaborate network in which participants pool money for individual’s benefit, may have cost Nigerians more than 486 million dollars (N200 billion) in recent years, financial experts have said.

The experts, Mr Yomi Babalola; Mr Tunji Adepeju and Mr Eric Akinduro, made this known to the News Agency of Nigeria (NAN) on Sunday in Ibadan, in respect of the Wealth of Nations, a media skills development programme, run by the Thomson Reuters Foundation.

They, however, predicted a surge in the revenue loss, unless the Federal Government urgently address the factors affecting the economy.

NAN reports that people were being wooed via social media daily to invest in the schemes, also known as the pyramid scheme or wonder banks with promises of attractive short- term returns.

In the schemes, people are being promised double returns on their investments in two hours, 48 hours, two weeks or six weeks with further promise of bonuses, if they refer others as well as monthly profits in addition to their capital.

NAN recalls that the Economic and Financial Crimes Commission (EFCC) had announced the arrest and prosecution of no fewer than 10 Ponzi scheme operators, who had allegedly defrauded Nigerians of over 28 million dollars (N12 billion) between October 2020 and August 2021.

Also, the Nigeria Electronic Fraud Forum (NEFF), under the Central Bank of Nigeria (CBN), weighed in with revelations that the Nigerian investing public lost another 28 million dollars (N11.9 billion) to the MMM.

According to the NEFF Report of 2017, the Nigeria Inter-Bank Settlement System (NIBSS) showed that the Nigerian fraud landscape for 2016 revealed that fraud cases grew by 82 per cent over the figures reported in 2015 from 10, 743 to 19,532 cases.

Commenting, Mr Yomi Babalola, a former banker with the Guaranty Trust Bank, told NAN that the global economic crisis in 2007, up to early 2009, led to an increase in the number of Ponzi scheme operators in Nigeria.

“The schemes started rising in prominence in 2006, although their existence stretched back to the 1990s.

“Between 2006 and 2007, there was a real tsunami of Ponzi schemes investments that swept the whole of Nigeria and it was quite prominent in Ibadan, the capital of Oyo State.

“Even, bankers withdrew their money from various bank accounts to put into Ponzi schemes.

“Throughout 2007, banks lost depositors’ funds because nobody wanted to deposit money with the banks, preferring Ponzi scheme operators because of high returns,” Babalola said.

The ex-banker said the irony was that the illegal operators themselves were making use of the banks and opening accounts to keep their money.

Babalola said the bubble, however, burst around 2009/2010 when the schemes lost their glory.

According to him, there has been a resurgence since 2016, which is on the rise due to continuous economic hardship now exacerbated by the COVID-19 pandemic.

“With all the ponzi schemes that have operated and those that are still operating, one can say that more than three to 12 billion dollars (N5 trillion) has been lost to capital flight through the schemes in two decades.

“Illegal operators advertised, using the media and the banks help them to layer their money and then integrate it and also make it fly out of the country.

“Unfortunately, some people in government were taking the people’s money and investing in the scheme. It is only recently that regulations were put in place. Now, CBN is regulating so many things.

“It is a big problem and it is spiralling down to the younger generation.

“The government needs to put the right measures in place for the economy to rebound and thrive, otherwise, people will continue to lose money.

“The only solution is a good blueprint of what the Nigerian economy is going to be like to be out in the public space because times are hard,” the expert said.

In his views, another financial expert, Tunji Adepeju, said that Nigerians have to curb their greed to be free from being defrauded.

Adepeju observed that the emergence of electronic platforms had enhanced the practice, which now comes in various guises.

Also, Eric Akinduro, the Chairman, Ibadan Shareholders Association of Nigeria, urged investors to be circumspect and ensure that the investment company they were entrusting their hard earned money with is registered with the appropriate government authorities before investing.

“Those looking for quick money will continue to be prey to Ponzi schemes operators.

“It is greed that causes those Nigerians to invest in schemes that promised them 100 per cent returns on investment (ROI),” he said.

The expert, however, suggested that the Federal Government should tackle the issues of high inflation rate, low interest rates on bank deposits and government bonds.

He said that government should as well address the effect of COVID-19, if the menace of Ponzi schemes is to be eliminated and reduce the surge in revenue loss for Nigeria.

NAN, however, recalls that the EFCC Chairman, Abdulrasheed Bawa,
had once said at a forum that work was ongoing to stem the tide of fraudsters operating the Ponzi schemes.

“When we aggregate all the complaints involving investment scams, as well as employment scams, Nigerians have complained to have lost over 486 million dollars (N200 billion). It is a huge problem.

“Ponzi schemes are available left, right and centre; Nigerians need to be wary of anyone promising them some high interest. How can you invest one thousand dollars (N500,000) and somebody is promising you 120 dollars (N50,000) every month and then, at the end, you will still collect your one thousand dollars back ?”

Similarly, the EFCC Spokesman, Wilson Uwajaren, had said, “The commission has been tackling the menace of Ponzi fraud using two main strategies: enforcement activities and aggressive sensitisation to discourage citizens from getting involved in the fraudulent scheme.”

Uwajaren said it was not possible to give any figures in terms of the illicit financial flows linked to Ponzi operators, only saying arrests are made regularly and “many cases” have been brought to court. (NAN)

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NDA Commandant Decorates Ombugadu, Others as Fellows of Solar Energy Society of Nigeria

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From Abel Zwànke, Lafia

The 2023 gubernatorial candidate of the People’s Democratic Party (PDP) in Nasarawa State, His Excellency Rt. Hon. David Emmanuel Ombugadu, has been decorated as a Fellow of the Solar Energy Society of Nigeria (SESN). Ombugadu received the Fellowship Award of Excellence during the 41st National Solar Energy Forum (NASEF) 2024, held on December 10 at the Nigerian Defence Academy (NDA) Postgraduate School, Kaduna.

The award, presented by the NDA Commandant, Major General John Ochai, recognized Ombugadu’s exceptional contributions to renewable energy advocacy and sustainable development in Nigeria.

Speaking to journalist yesterday after receiving the award Ombugadu expressed gratitude for the honour.

“I am deeply honourd to receive this prestigious Fellowship Award from the Solar Energy Society of Nigeria in collaboration with the Nigerian Defence Academy. This recognition highlights the importance of renewable energy in addressing our nation’s energy challenges and fostering sustainable development,” he said.

Ombugadu advocated for increased investments in renewable energy, noting that over 80 million Nigerians lack access to electricity. “This award is a call to action. Renewable energy is essential for our national development, and we must commit more resources to this transition to empower communities and combat climate change,” Ombugadu stated.

Reading Ombugadu’s citation, the organizers described him as a philanthropist, entrepreneur, and visionary leader. Known for his contributions to healthcare, education, and water supply in rural areas, Ombugadu has drilled over 1,500 boreholes and enrolled more than 12,000 people in the National Health Insurance Scheme (NHIS).

Themed “Advancing Solar Energy Solutions for Sustainable Development,” the forum brought together energy experts, policymakers, and industry stakeholders to strategize on enhancing Nigeria’s energy security through solar technology.

Major General Ochai, who was also conferred as a Fellow, highlighted the NDA’s strides in adopting renewable energy for sustainability. “Earlier this year, the NDA established the Biodiversity and Conservation Centre, targeted at conserving the environment. In a few days, we will inaugurate a 2.5-megawatt solar farm, which will take the NDA off the national grid, help decarbonize the environment, and cut energy costs,” Ochai said.

He emphasised the academy’s commitment to community support, adding, “Whatever energy we generate through solar power will also benefit the Afaka community as part of our corporate social responsibility. Solar energy is the future, and we are proud to champion this cause.”

The Minister of Housing and Urban Development, Ahmad Dangiwa, represented by Aishatu Yusha’u, emphasized the role of solar energy in urban development. “Solar energy can reduce greenhouse gas emissions, enhance energy efficiency, and promote sustainability in urban planning,” she said.

Prof. Magnus Onuoha, President of the Renewable Energy and Energy Efficiency Associations Alliance (REEEAA), praised the NDA’s bold step in constructing its solar power plant. “The NDA’s solar farm will serve as a shining example of what can be achieved when institutions prioritize sustainability and renewable energy,” Onuoha said.

He called for comprehensive policies to address Nigeria’s energy challenges. “Our alliance is committed to promoting the growth of renewable energy and transitioning from fossil fuels to cleaner, more sustainable sources,” he added.

The Rural Electrification Agency (REA), through its Managing Director, Abba Abubakar, represented by Timothy Shekari, reiterated its commitment to providing energy access to underserved communities, highlighting initiatives that have energized markets and impacted over 1.2 million people.

The forum concluded with renewed commitments from stakeholders to advance renewable energy initiatives across Nigeria, with solar energy taking center stage in the nation’s sustainable development goals.

Other distinguished recipients included Kaduna State Governor Senator Uba Sani, represented by the Managing Director of the Kaduna State Power Supply Company, Aminu Idris, and Mrs. Olanike Olugboji-Daramola, CEO of the Women Initiative for Sustainable Environment (WISE).

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Yuletide: Bode George Urges Tinubu to Reduce Petrol Price

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Chief Bode George, a former Deputy National Chairman of the Peoples Democratic Party (PDP), has urged President Bola Tinubu to reduce the price of petrol   to N300 per litre ,to make things easy for Nigerians during the festive season.

George, the Atona Oodua of Yorubaland, made this plea at an interactive session with newsmen on Wednesday in Lagos.

The price of Premium Motor Spirit, popularly known as petrol, is currently above N1,000 per litre.

According to the elder statesman,Nigerians  are going through hardship, the President should give an order to reduce fuel price, specifying time frame the people will enjoy such window of relief.

He said that the federal government as well as well- meaning individuals and businesses could bear the cost of such price slash , to bring happiness to all Nigerians.

The PDP leader, who noted that December and January are  special months , said that such gesture could start from the  middle of December and run through January.

“I have been thinking, as a Nigerian, what can we do because the anger and the hunger are almost equal on the streets of Nigeria.

“What am I suggesting is that Mr President should sit down with his managers and give an order that from the middle of December to the end of January, the cost of petrol will be N300 per litre.

“The government can absorb the losses in the interest of the suffering people.

“If they (government) want others to contribute, let us know how much that is going to cost and ask people to donate, to bear the cost.

“We will be sending a lot of messages of happiness across the tribes and homes.

“Everybody in Nigeria will be happy because it will positively impact on this period of the year. It is a challenge and he (Tinubu) can do it.

“We need this in this December and January to put smiles on the faces of Nigerians, ” George, a PDP Board of Trustees (BOT) life member, said.

Advising the President to take further measures to bring relief to the people, he said that the gesture would crash prices of essential commodities and services for the benefit of all .

He said that government’s efforts should be concentrated on reducing high inflation rate, unemployment, poverty and youth restlessness  in order to create a better future for Nigerians

Speaking on the recent presidential election in Ghana, George noted that Nigeria’s electoral system  needed reforms to guard against electoral frauds and manipulations.

According to him, the nation will continue to grope for development if the system fails to encourage best candidates  to emerge.

Stating that election must reflect the wishes of the people and be devoid of  religious and tribal sentiments, George said that Ghana election should be a wake up call for Nigeria.

“INEC performance must improve. The commission must make sure that the voice of the people is  heard in elections.

“Electoral offenders should be made to face the music and sent to jail. We must be very firm about due process, credibility and transparency in elections,” he said.

Urging the President to revisit resolutions in the 2014 Constitutional Conference, George said that the current constitution was not federal in principle and practice.

“We should not deceive ourselves, the constitution is a problem. It is a military constitution, it is not democratic,” he said.

George called on the National Assembly to ensure devolution of powers and electoral reforms that would do away with manual collation of election results and mandate electronic transmission of election results from polling units.

George disagreed with political watchers saying no  vacancy in  presidency in 2027.

On the dwindling strength of the former ruling party, George, who noted that all organisations had its ups and downs, said that selfish interests and disregard for  party rules remained PDP’s major challenge.

He said that PDP could bounce back and win presidential election if the leadership decided to elevate national interest above selfish interests and adhere to the party’s constitution.

“We will tell ourselves some serious old truth. We messed ourselves  up. ” he said.

Stating, however, that the PDP was not dead, George said that lack of justice, equity, fairness and the inability to adhere to the  party’s zoning and rotational principle cost the party victory in 2023.

Calling on the party’s founding fathers alive to wake up and rescue the party, George said that Nigerians were still waiting for the former ruling party to take over power and put things right. (NAN)

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Tinubu Set for Groundbreaking of Renewed Hope City in Lagos 

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President Bola Tinubu, is set to perform the  groundbreaking of 2,000 housing units of the Renewed Hope City in Ibeju Lekki, Lagos, in the next few weeks.

Mr Ahmed Dangiwa, Minister of Housing and Urban Development, announced this during an official assessment visit, on Wednesday in Lagos

Dangiwa said Lagos would represent the South-west, while the president would do that of the North-West in Kano, before doing that of the four other regions.

“Arrangements is already on ground, we have gotten sites, and work has commenced for 2000 houses in the Renewed Hope City that we intend to build in Ibeju-Lekki,” he said.

Towards achieving the set goal, the minister said the visiting team also paid a courtesy visit to Gov.

Babajide Sanwo-Olu to discuss area of collaboration between the federal and state governments.

He disclosed that the federal and Lagos state governments had agreed to set up a Tripartite committee and ensure all the issues of concerns between the parties were resolved amicably for the benefit of all.

Earlier, the Minister embarked on an assessment visit of deplorable Federal Government buildings and assets across Lagos state in a bid to commence rehabilitation on them in a few months.

Dangiwa said the rehabilitation was necessary as the deplorable buildings posed a challenge and security concerns to the Lagos state government. (NAN)

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