CBN Advises Nigerians Against Patronising Illegal Financial Operators

Central Bank of Nigeria (CBN) has raised concerns over the increasing rates of Illegal Financial Operators’ (IFOs) activities in the country.

CBN in a statement titled “ Advisory on Illegal Financial Operators”, noted that the activities of IFOs portend a grave risk to the country’s financial system.

The apex bank, through its Financial Services Regulation and Coordinating Committee (FSRCC), and in collaboration with the National Broadcasting Commission (NBC), issued a joint statement to guide citizens and the general public against falling victim to Ponzi scheme operators and loan sharks in the country.

The FSRCC was established by Section 38 of the CBN Act. It became effective in May 1999 to address more effectively, through consultations and regular inter-agency meetings, issues of common concern to regulatory and supervisory bodies.

Recently, many Nigerians lost their hard-earned money to IFOs in different parts of the country.

To curb the growing trend, the FSRCC urged the general public to 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.

It also urged Nigerians to “verify the licensing status of such companies and schemes on the websites of the CBN

“The Public is advised to report any individual or entities suspected to be involved in such nefarious activities to Law enforcement agencies,” CBN said.

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