The Central Bank of Nigeria (CBN) has warned Nigerians to stop dealing with unlicensed and illegal financial operators who defraud members of the public.
In a statement published by the CBN on its website on Monday, the Financial Services Regulation Coordinating Committee (FSRCC) expressed worries that the increase in activities of illegal financial operators (IFOs) portends a grave risk to public confidence and the stability of the Nigerian financial system.
“The FSRCC wishes to draw the attention of the general public to the worrisome increase in the activities of the Illegal Financial Operators (IFOs) which portends grave risk to public confidence and the stability of the Nigerian Financial System.
“The FSRCC in its continuing efforts to end the scourge of IFOs in Nigeria hereby issues the following advisory:
“The general public is advised to refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extra-ordinary returns on investments as bait,” the statement which was signed by the Secretary, Financial Services Regulation Coordinating Committee, read in part.
CBN, therefore advised members of the public to visit its official website and that of the Securities and Exchange Commission (SEC) and other relevant member agencies of the FSRCC to verify the registration and license status of such companies and schemes before investing in them.
Nigerians were also advised to report any individual or entities suspected to be involved in such nefarious activities to the law enforcement agencies.
The FSRCC was established by the CBN in April 1994, to address more effectively, through consultations and regular inter-agency meetings, issues of common concern to regulatory and supervisory bodies.