Many Nigerians have not gotten over the billions of Naira, NGN
they lost to the stock market crash of 2008 and some not too legal financial products sold to millions of Nigerians as high-yield investments with guarantee returns.
Well, eight years on, there seems to be a resurgence of Ponzi Schemes in Nigeria. Less than two weeks ago, the Securities & Exchange Commission, SEC, the government agency regulating financial markets and the Nigerian stock exchange alerted the public about one company with the name: Fantastic EsanBet Nigeria Limited. This company is based in Edo State, South South Nigeria. SEC reported it to be conducting illegal financial transactions with intent to misleading its customers.
In a press release by the SEC, the commission warns the general public to desist from doing anything with Esanbest. The statement reads thus:
“The attention of the Securities & Exchange Commission has been drawn to a ponzi scheme floated and operated by Fantastic EsanBet Nigeria Limited in Benin, Edo State and its environs.
The said Fantastic EsanBet Nigeria Limited is not registered by the Commission to perform any function in the capital market and its operations/activities in the capital market are therefore illegal.
In view of the above, the general public is hereby WARNED that any person subscribing to any of its products or dealing with it in any capital market related business is doing so at his/her own risk.”
In 2006, about two years before the global financial crisis, millions of Nigerians did not only invest in the stock market. Many invested in alternative but phony investment schemes that ended up to be massive Ponzi schemes ever in the history of Nigeria.