CBN cautions Nigerians against unlicensed financial operators

The Central Bank of Nigeria (CBN), last week cautioned Nigerians against the activities of unlicensed financial operators (IFOs), who lure and defraud unsuspecting members of the public with unrealistic returns on investments.

The apex bank advised the investing public to visit the websites of the central bank, Securities and Exchange Commission (SEC) and other relevant member agencies of the apex bank’s Financial Services Regulation Coordinating Committee (FSRCC) to verify the registration and licence status of such companies and schemes before investing in them.

The CBN, which raised the red flag for the second time within 30 days, had in March, cautioned Nigerians to distance themselves from purveyors of such dubious financial deals which have sent thousands of Nigerians to bankruptcy.

The Jalingo Branch Controller of the CBN, Mr. Idris Dagona, who stood in for the bank’s Corporate Communications, Osita Nwasinobi, at an event in Jalingo, wondered why Nigerians have continued to fall victims to unlicensed financial entities. The CBN, according to him, successfully refunded N95.2billion to customers in 2021.

The CBN further expressed worry over the increase in the activities of IFOs which it stated portends grave risk to public confidence and the stability of the Nigerian financial system.

ThisDay