FinAfrica Investment And Poyoyo Investment Are Ponzi Schemes, SEC Warns
- Nigeria's Security and Exchenge Commission has raised the alarm over two alleged Ponzi schemes currently operating in Nigeria
- FinAfrica Investment Limited based in Enugu State and Poyoyo Investment Limited have designated as Ponzi schemes by the commission
- FinAfrica has rejected refuted claims that it termed as Ponzi by the SEC saying that they operate legitimate business
Nigeria’s Securities and Exchange Commission (SEC) has warned the public over the operations of FinAfrica Investment Limited based in Enugu and Poyoyo Investment in Lagos that they are Ponzi schemes as they do not have viable business models.
The Exchange said the operations of the outfits are illegal as they are not recognised by Commission.
Source: UGC
In the circular by the management of the SEC which was published on its website on Tuesday, December 27, 2021, the Commission said the operational style of the companies is not authorised by it.
What the SEC said
The SEC said:
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”The attention of SEC has been drawn to the activities of an illegal operator, FinAfrica Investment Limited. The company claimed to be an investment company that engages in business development in commercial sectors of the economy and uses the funds in entities under Chinmark Group. The commission hereby notifies the investing public that neither FinAfrica investment Limited nor Chinmark Group is registered by SEC. The investment scheme promoted by these entities are also not authorised by SEC. In view of the above, the general public is hereby warned that any person dealing with the named companies in any capital market-related business is doing so at their own risk.”
The SEC also said it is in the know about WhatsApp and electronic messages being sent to investors on behalf of Poyoyo Investment Limited (PILVEST).
The SEC notified the public wishing to invest that Poyoyo Investment (PILVEST) Nigeria Limited have no tangible business model, hence it is a Ponzi scheme where returns are paid from other people’s invested sum, the Commission added.
FinAfrica reacts
Marksman Ijioma, Chairman of Chinmark Group, owners of FinAfrica Investment told the News Agency of Nigeria (NAN) that they were not termed as Ponzi scheme in the circular.
SEC did not term us a Ponzi scheme
“We do not do capital market business, we do not sell stock or shares. We are not into equity funding. What we do is that we have partners who come together and give us funds to run business and at the end of the month, we give them profit from the business. We do not call it interest, we call it profit. We have been doing it for over six years and from that partnership, we have been able to build a six-unit hotel in Enugu.”
Meanehile, Legit.ng has reported that the Nigerian financial industry landscape is laced with interesting options, most of which give users the ability to make a choice that allows them optimal use.
It’s easy to get a job when you move to the USA - Nigerian abroad While some banks in Nigeria are paying higher interest to depositors for saving money with them, others are just there to make profits and post interesting figures at the end of their financial year.
The minimum interest rate approved by a regulatory agency like the Central Bank of Nigeria (CBN) is 1.5 per cent.
Source: Legit.ng
