Economy

Flee from FinAfrica, Poyoyo investments, SEC warns Nigerians

Flee from FinAfrica, Poyoyo investments, SEC warns Nigerians
Written by Maritime First

… As Expert Speaks on Factors that’ll shape stock market, economy in 2022***

The Securities and Exchange Commission (SEC) has warned the public against dealings with FinAfrica Investment Ltd and Poyoyo Investment.

A circular by the management of SEC and published on the commission’s website said the activities of the companies were not registered by it.

The commission described the business of Poyoyo Investment (Pilvest) Nigeria Ltd., as a Ponzi scheme, where returns were paid from other people’s invested sums.

”The attention of SEC has been drawn to the activities of an illegal operator, FinAfrica Investment Limited.

”The company claimed to be an investment company that engages in business development in commercial sectors of the economy and uses the funds in entities under Chinmark Group.

”The commission hereby notifies the investing public that neither FinAfrica investment Limited nor Chinmark Group is registered by SEC.

”The investment scheme promoted by these entities is also not authorized by SEC.

“In view of the above, the general public is hereby warned that any person dealing with the named companies in any capital market-related business is doing so at their own risk,” the circular said.

It also noted that the attention of SEC had been drawn to the electronic and WhatsApp messages being circulated to investors on behalf of Poyoyo Investment (Pilvest) Nigeria Ltd.

“The commission hereby notifies the investing public that Poyoyo Investment (PILVEST) Nigeria Limited has no tangible business model, hence it is a Ponzi scheme where returns are paid from other people’s invested sum,” it added.

Reacting to the circular, Dr. Marksman Ijiomah, the Chairman, Chinmark Group, told newsmen in an interview that FinAfrica Investment Limited was not engaged in the capital market business.

Ijiomah who disclosed that the partnership had been on for six years said that SEC had never written the company to notify them that their dealings were not in line with their regulations.

“SEC did not term us a Ponzi scheme in the circular.

“We do not do capital market business, we do not sell stock or shares. We are not into equity funding.

“What we do is that we have partners who come together and give us funds to run business and at the end of the month, we give them to profit from the business.

“We do not call it interest, we call it profit.

“We have been doing it for over six years and from that partnership, we have been able to build a six-unit hotel in Enugu.

“We have also built a restaurant in Dubai and these things are visible for everyone to see,” Ijiomah told NAN.

He added that the company was not into a Ponzi business.

“Our rate is three per cent monthly, that is what we pay.

“SEC has neither invited us nor sent us a circular to say that what we are doing is not in line with their regulations before they made the publication,’’ he said.

 

In another development, some capital market operators have Identified events that will shape the stock market and the economy in 2022.

Speaking with newsmen on Tuesday in Lagos, they said the market and the economy would be impacted by the Monetary Policy Committee, 2022 budget implementation, consumer price index, among others.

Mr. Ambrose Omordion, Chief Operating Officer, InvestData Ltd., said budget implementation, economic data, political activities and fuel subsidy removal would determine activities in the coming year.

He added that OPEC meetings, December year-end corporate earnings, interest rate and industrial output would also shape economic activities in 2022.

He also listed agriculture, financial services, telecommunications, manufacturing, industrial goods and healthcare as sectors that would drive the growth of the stock market in 2022, going by their contributions to the GDP.

Omordion added that there would be more opportunities for financial services, especially banks expected to take advantage of the free trade zone agreement.

“The telecommunication companies, especially MTNN and Airtel increasing cash flow as a result of ongoing digital economy drive, payment service bank licence and others will boost performance in the new year,” Omordion said.

He explained that the removal of fuel subsidies and restructuring of the sector with the PIB in operation would open new business opportunities in the industry.

Omordion, however, said the outlook for the stock market and the economy in 2022 remained mixed and dicey being a pre-election year with expectations of change in the economic policies of the government.

Also speaking, Mr. Rotimi Olubi, the Managing Director, Morgan Capital Securities Ltd., said the performance of the stock market in 2022 would be characterized by several factors.

Olubi said the introduction of IFRS 17 for insurance companies would impact reporting of insurance companies’ contracts.

He added that full deregulation of the oil and gas sector would lead to an increase in the pump price of petrol and the ripple effect would lead to inflation.

According to him, recapitalisation of insurance and pension firms will lead to a lot mergers and acquisitions as well as possible hostile takeovers in 2022.

 

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Maritime First