The Central Bank of Nigeria’s (CBN) Financial Services Regulation and Coordinating Committee (FSRCC) has issued a guideline to help Nigerians avoid illegal financial operators in the country.
According to the regulator, the illegal financial operators are luring unsuspecting Nigerians with extraordinary returns on investments to defraud investors.
The financial committee noted the increase in the activities of illegal financial operators, which they described as worrisome to the members.
This was made known in a statement released on Thursday by the CBN, as the Financial Services Regulation and Coordinating Committee and the National Broadcasting Commission (NBC) collaborate to create awareness in the country’s investment market.
In the statement, FSRCC said the rise portends grave risk to the public confidence and stability of the Nigerian Financial System, hence, the warning to unsuspecting investors.
“The Financial Services Regulation and Coordinating Committee (FSRCC), in collaboration with National Broadcasting Commission (NBC), wishes to draw the attention of the public to the worrisome increase in the activities of Illegal Financial Operators (IFOs) which portends grave risk to the public confidence and stability of the Nigerian Financial System.
“The FSRCC and NBC in their continuing efforts to end the scourge of IFOs in Nigeria, hereby issue the following advisory to the general public:
“Refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extraordinary returns on investments as bait,” the FSRCC stated.
On how to avoid becoming a victim of illegal financial operators, the FSRCC advised prospective investors to check the license of the investment company offering extraordinary returns on investments.
Nigerians were directed to verify the investment company’s license status on the websites of CBN, the Securities and Exchange Commission (SEC), National Insurance Commission (NAICOM) and the National Pension Commission (PenCom).
Also, the FSRCC told Nigerians to report individuals or companies that tried or succeeded in defrauding them, “Consequently, the Public is advised to report any individual or entities suspected to be involved in such nefarious activities to Law enforcement agencies. And Call: tolled line: 0700-225-5226; Toll-Free Line: 0800-225-5226. FSRCC Direct Line: +234-817-665-6273,” Part of the statement reads.