Your Money at Risk : SEC Shuts Down 13-Year-Old Investment Company, Sends Warning to Nigerians
The Securities and Exchange Commission (SEC) has taken decisive action against Ready Finance Investors Limited, a company operating in Abuja, by sealing its premises due to alleged involvement in illegal investment activities and prohibited capital market practices. The SEC accused the company of running a scheme resembling a covert Ponzi scheme, enticing clients with promises of fixed returns on investment based on specific subscription packages.
Ready Finance, registered in 2010 and located at Flat 5, AYA Memorial Plaza, Nkwere Street, Area 11, Garki, Abuja, is reported to have engaged in financial investment services without proper registration for capital market activities, rendering its operations illegal. The SEC’s move includes shutting down the company’s operations and directing law enforcement agencies to conduct a criminal investigation with potential prosecution.
The SEC issued a warning to Nigerians, cautioning them against conducting any business with Ready Finance. Individuals engaging with the company are deemed to be doing so at their own risk. The regulatory action is part of broader efforts by the SEC to curb the operations of illegal capital market operators in Nigeria. The commission has implemented various measures, including amending Anti Money Laundering and Countering the Financing of Terrorism Financing (AML/CFT/CPF) Regulation 2022, Targeted Financial Sanctions (TFS), risk-based supervision, and guidance on Politically Exposed Persons (PEPs).
In a related development, the African Development Bank (AfDB) revealed that portfolio investments in Nigeria amounted to $4.4 billion, ranking among the highest in the region. However, there was a reported drop from 36% to 32% in the first three quarters of 2023.
