The Nigerian Exchange Limited (NGX) has issued a public warning about a suspected impersonation scheme involving a false claim of affiliation with the NGX Group.
In an official statement shared on its X (formerly Twitter) handle on Monday, NGX identified an individual named “Professor Adebayo Oluwatokun” and an entity known as “Value Gain” as the parties allegedly orchestrating the fraud. These entities are reportedly using a WhatsApp group titled “NGX GroupA7” to mislead and defraud members of the public.
Statement Details
“Our attention has been drawn to the activities of fraudulent entities, including one operating under the name ‘Value Gain’ and a person falsely identified as ‘Professor Adebayo Oluwatokun.’ These individuals are impersonating NGX via a WhatsApp group named ‘NGX GroupA7’ to mislead the public.
“Neither ‘Value Gain’ nor the said individual is affiliated with NGX, its subsidiaries, or registered Trading License Holders. Any claims or communications from them are false and fraudulent,” NGX stated.
The exchange reaffirmed its commitment to protecting investors and maintaining trust in Nigeria’s capital market. It urged the public to avoid engaging with the identified entities and to report any suspicious activity immediately.
Fraud Concerns in the Capital Market
This warning highlights the growing concern over fraudulent activities in Nigeria’s capital market, including infractions allegedly perpetrated by stockbrokers and dealing member firms. Industry experts have linked this trend to the failure of some stockbroking firms to comply with Know Your Client (KYC) requirements, which are designed to protect investors and ensure market integrity.
Insights from NGX Group CEO
Last week, Temi Popoola, the Group Chief Executive Officer of Nigerian Exchange Group Plc (NGX Group), emphasized the importance of regional collaboration, public-private partnerships, and innovative market solutions to unlock Africa’s economic potential.
Speaking at the launch of the Ethiopian Securities Exchange (ESX) on Friday, Popoola underscored the transformative potential of capital markets in driving sustainable economic growth across the continent.
“Ethiopia’s capital market has the potential to play a transformative role in driving economic development and establishing itself as a leader in Africa’s financial ecosystem. With the right mix of innovation, policy support, and regional collaboration, this goal is achievable,” he remarked.
Popoola also highlighted NGX Group’s strategic investment in ESX, noting Ethiopia’s significant market potential. He described the partnership as a step toward fostering economic growth through innovation and emphasized the importance of cross-border investments in building Africa’s financial ecosystem.
“Our partnership transcends traditional investment parameters. It is about ensuring that ESX evolves into a key player in Africa’s financial ecosystem, enabling cross-border investments and setting benchmarks for market development,” Popoola stated.
He further stressed the need for opening Africa’s financial markets to attract more capital and bolster regional economic growth.
Key Takeaways
• NGX warns the public against engaging with fraudulent entities impersonating its officials and advises vigilance.
• Concerns persist about compliance issues among stockbroking firms, which contribute to fraud in Nigeria’s capital market.
• NGX Group CEO Temi Popoola emphasizes the transformative role of capital markets in Africa, particularly through regional collaboration and policy support.
• The Ethiopian Securities Exchange (ESX) launch is seen as a significant milestone for the continent’s financial ecosystem.
NGX’s advisory serves as a reminder of the importance of vigilance and compliance in maintaining trust and stability within Nigeria’s capital market.
