Chartered Institute of Stockbrokers Targets Ponzi Scheme Menace with Youth Financial Literacy Drive

The Chartered Institute of Stockbrokers (CIS) has announced fresh plans to confront the growing threat of Ponzi schemes in Nigeria by rolling out financial literacy initiatives targeted at young people. The Institute explained that equipping the youth with financial knowledge and investment skills is the most effective long-term strategy to stop the proliferation of fraudulent schemes that continue to defraud millions of unsuspecting Nigerians.

Ponzi schemes have become a persistent menace in Nigeria, taking advantage of rising unemployment, economic hardship, and the widespread desire for quick wealth. The schemes often promise unrealistic returns on investments, luring people into parting with their hard-earned money. Over the years, regulators and law enforcement agencies have issued multiple warnings, but new schemes keep emerging, particularly on digital platforms and social media. The CIS believes that the key to breaking this cycle lies in proactive education rather than reactive interventions.

According to CIS President, Oluropo Dada, the Institute is prioritising the empowerment of Nigeria’s youth, who form the largest proportion of the population and are also the most vulnerable to Ponzi operators. He explained that the new initiative will focus on embedding investment education into schools, universities, and youth programmes across the country. The goal is to raise a generation that understands how financial markets work, recognises legitimate investment opportunities, and avoids being deceived by fraudulent promises.

Dada highlighted that the CIS has already begun collaborating with educational institutions and professional bodies to introduce tailored modules on financial literacy. These modules will cover basics such as savings culture, stock market fundamentals, risk management, and long-term wealth creation. By demystifying the capital market and making investment principles accessible, the Institute hopes to show young Nigerians that there are safe and sustainable ways to build wealth outside of dubious schemes.

The Institute also noted that its efforts will be aligned with broader government and private sector initiatives aimed at increasing financial inclusion. Nigeria still struggles with a high percentage of its population remaining outside the formal financial system, a factor that has made it easier for Ponzi schemes to thrive. CIS believes that by combining access to legitimate financial services with strong educational campaigns, the attraction of Ponzi schemes will diminish.

Experts argue that Ponzi schemes thrive largely because of ignorance and desperation. Many victims enter such schemes without a proper understanding of risk and return, or without knowing how regulated financial markets operate. Some victims even ignore red flags because they lack alternative investment channels. Financial education, according to analysts, is therefore a practical tool for prevention, as it builds critical thinking around money and investment.

The CIS plans to leverage technology in its campaign, using digital platforms and social media to reach millions of young Nigerians where they are most active. The Institute says it will create engaging content, including videos, infographics, and interactive sessions, to simplify investment concepts. Additionally, it is working on partnerships with influencers and youth organisations to amplify its message and make financial literacy appealing to the younger generation.

Beyond financial literacy, the CIS is calling on regulators and policymakers to strengthen enforcement mechanisms against Ponzi operators. While education reduces vulnerability, fraudulent schemes must also be dismantled quickly to protect those who may still be at risk. The Institute urged agencies such as the Securities and Exchange Commission (SEC) and the Economic and Financial Crimes Commission (EFCC) to intensify crackdowns on operators, especially those exploiting digital loopholes.

Industry stakeholders welcomed the CIS initiative, saying it represents a step in the right direction. They noted that the financial market cannot grow sustainably if investor confidence is undermined by fraudulent practices. By focusing on young people, the Institute is targeting the group that will drive the future of the Nigerian economy. If the youth are financially literate, not only will they avoid Ponzi schemes, but they will also be better positioned to channel funds into productive sectors of the economy.

For the youth themselves, the campaign could be transformative. With rising unemployment and economic uncertainty, many young Nigerians often look for quick financial relief. Equipping them with financial knowledge helps them see the dangers of shortcuts and the benefits of long-term planning. More importantly, it offers them a chance to engage with formal financial systems in ways that could create wealth, stability, and opportunities for entrepreneurship.

As Nigeria continues to battle the consequences of fraudulent schemes, the CIS’s initiative demonstrates that prevention through education is just as important as enforcement. By building a generation of financially savvy youths, the country can gradually close the chapter on Ponzi schemes while simultaneously boosting participation in regulated investment markets.

The CIS reiterated its commitment to ensuring that every Nigerian, particularly the younger demographic, understands the risks of financial fraud and the opportunities available in legitimate markets. The Institute pledged to sustain its awareness campaigns, expand partnerships, and ensure that no Nigerian youth is left in the dark when it comes to making informed financial decisions.

With over eight million Nigerians already affected by Ponzi schemes in recent years, the Institute believes this campaign is urgent. It marks the beginning of a cultural shift, where financial education becomes a cornerstone of national development and a powerful tool against fraud.