SEC warns against new ‘Ponzi schemes’ FinAfrica and Poyoyo Investment

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The Nigeria Securities and Exchange Commission (SEC), has issued a warning to the public about the operations of FinAfrica Investment Ltd and Poyoyo Investment. 

The investment regulator claims that the companies are Ponzi schemes and are not accredited by the SEC.

The exchange commission made this announcement via a circular sent by the commission’s management and posted on the website.

According to the commission, FinAfrica investment has made claims to be a business development company that invests in commercial areas of the economy as well as in Chimark Group companies.

The Commission added that the operations of both businesses and the Chimark group are not approved by the SEC and the investment scheme promoted by these entities are unauthorized.

“The attention of the 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 the Chinmark Group.” 

“The commission hereby notifies the investing public that neither FinAfrica Investment Limited nor Chinmark Group is registered by the SEC. The investment schemes 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. ” 

Similarly, the commission also issues a similar stern warning to the general public concerning the activities of Poyoyo Investment (Pilvest) Nigeria Ltd.

Ponzi scheme in Nigeria

The commission reaffirmed that it has been alerted to the electronic and WhatsApp messages being sent out on behalf of Poyoyo Investment (Pilvest) Nigeria Ltd to investors.

The SEC says the company has no tangible business model that makes it a legitimate enterprise, hence a Ponzi scheme that poses disadvantages to Nigerians. 

“The commission hereby notifies the investing public that Poyoyo Investment (PILVEST) Nigeria Limited has no tangible business model; hence it is a Ponzi scheme where returns are paid from other people’s invested sums,” it added.

Similar Ponzi schemes from the past 

The SEC’s public warning is not the first time the commission has called attention to illegal Ponzi scheme dealings.

Nigerians are known to constantly fall victim to investment companies who are more willing than ever to part them from their hard-earned income.  

MMM Nigeria

A Case of MMM, Pokemoney Investment, Rasterli, Twinkas, and Ultimate Cycler are some of the different Ponzi schemes that have arisen to defraud citizens.

The perpetrators of these deceptive scams appear out of nowhere, posing as idealists, selling people hope for a brighter tomorrow. Meanwhile, their major goal is to loot Peter in order to pay Paul. 

Some of these Ponzi enterprises secure essential legal documents, then begin ad campaigns and experiment with targeted marketing strategies, supported by an intimidating corporate image. 

They offer collaboration deals or financial compensation to celebrities for brand endorsements to further legitimize their activities and acquire access to millions of consumers.

However, as the unfolding massive financial investment losses reveal the true intentions of the principals, new ways are being developed and deployed to continue to blackmail Nigerians.



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