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Authorities Helpless as Crypto-Currency Scams Rock Nigeria

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Large scale crypto-currency scams are rocking Nigeria as fraudulent firms claiming to offer digital currencies buffet on Nigerians while monetary authorities and law enforcement agencies appear helpless.

Authorities Helpless as Crypto-Currency Scams Rock Nigeria

These firms claim they speculate on crypto-currency price movements via a CFD trading account, or buy and sell the underlying coins via exchanges.

In reality, they are pyramid schemes or Ponzi schemes whose activities span various illegal activities, such as money laundering and terrorism, illegal drug trafficking, human trafficking, and support for radical movements.

Losses to the scheme are estimated in hundreds of millions of Naira as Nigerians eager to escape hitting economic hardship are lured with mouth watering offers.

Anthony Ogbo, a cyber security expert, warned, that unless financial regulatory authorities develop a robust financial system and regulation that will accommodate crypto-currency, losses will continue to mount.

“Unfortunately, we lack the ability to keep up with the fast changing digital space. And the authorities are not helping matters, they are so lethargic” he said.

Capitalizing on weak regulations and the inability to keep up with the sometimes misleading promise of technology, the firms dangle offers too hard to resist.

Chuks Arubaleze, a lawyer, said, that crypto-currency scams are clear and present danger which may get out of hand if something urgent is done to stem them.

“These new scams have all the attributes of wire fraud, bank fraud and operation of unlicensed money transfer and conspiracy. If the authorities are serious, those are enough to begin to crack down on the operators” Arubaleze said.

Binus Yaro, a victim of one of the schemes said he could not get justice even after making formal complaints to the Nigerian Police.

According Yaro, the police did not even invite the promoter of the scheme.

“I lost my hard earned money like that” he said.

Like many victims of the scam, Yaro was invited by a fraudulent firm through telegram chat group, to pay money into an account after being promised that once the payment was effected, he will get return 100 per cent interest within an hour.

According to Yaro, the firm, added him in their telegram chat group and proceeded to make offers to over 3,000 people in the group.

“And some people were testifying they got paid and when the firm sent me a private chat asking me to take advantage of a promo, I did”. He said

Yaro, proceeded to make the payment and alerted the firm, which turned around to demand additional money to redouble his initial investment.

“When I insisted i only demanded one off investment, the firm could not provide any answer till today and has even removed me from the group. The only thing I have now is the name I paid money to and the account number” Yaro added.

The legal status of crypto-currency in Nigeria remains ambiguous, though Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), have issued strong notices about the pitfalls of investing in the crypto currency markets.

The regulators have also added the risk resulting from the high volatility associated with crypto currencies and the fact that many of the organizations that facilitate such transactions are unregulated.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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E-Financial

CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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