CBN Provides Hotlines to Report Yahoo Boys, Ponzi Scheme Operators And Loan Companies

The Nigerian government has warned the public to be wary of illegal financial operators (IFOs) who pose a serious threat to the stability and credibility of the Nigerian financial system.

The government has also launched a sensitisation campaign to educate Nigerians on how to identify and report such operators.

The Financial Services Regulation and Coordinating Committee (FSRCC), in collaboration with the National Broadcasting Commission (NBC), issued an advisory on illegal financial operators on the Central Bank of Nigeria (CBN) website.

The FSRCC is a statutory body established by Section 38 of the CBN Act and inaugurated by the CBN governor in May 19992.

According to the advisory, IFOs are unlicensed or illegal entities that lure and defraud unsuspecting members of the public by offering unusually high investment returns as bait.

These operators may include Yahoo Boys, Ponzi schemes, pyramid schemes, loan companies, or other fraudulent schemes.

The advisory urged Nigerians to refrain from dealing with IFOs and to verify the licensing status of any company or scheme before investing in them. The advisory provided the following websites for verification:

• CBN: https://www.cbn.gov.ng
• NAICOM: https://naicom.gov.ng
• PenCom: https://www.pencom.gov.ng
• SEC: https://sec.gov.ng

The advisory also advised Nigerians to report any individual or entities suspected to be involved in such nefarious activities to law enforcement agencies or call the following numbers:

• Tolled line: 0700-225-5226
• Toll-Free Line: 0800-225-5226
• FSRCC Direct Line: +234-817-665-6273

The advisory said that member agencies of the FSRCC will continue to engage in regular sensitisation campaigns on the threats posed by the activities of IFOs.

Meanwhile, in another report, it was revealed that the CBN had introduced a new portal that will put an end to malpractices in the foreign exchange market. The portal is set to go live by the end of August 2023, and it is expected to be a game-changer if done correctly.

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