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Investors Lose N1bn to Wonder Banks

13 Dec 2012

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DG CBN Financial Stability, Dr. Kingsley Moghalu

The Deputy Governor of the Central Bank of Nigerian (CBN) in charge of Financial Stability, Dr. Kingsley Moghalu, has said about 560,000 Nigerians have lost over N1 billion to wonder banks between 2009 and now.

Moghalu, who disclosed this yesterday at awards presentation of the Nigerian Stock Exchange (NSE) 11th Annual National Competition ceremony in Lagos, attributed the development to lack of financial literacy.

He therefore called for early financial education so as to enable investors make good investment decisions and avoid falling for dupes.

“There is a lot of scam where people are promised that if they bring this amount, it will be doubled for them. Such investment and instant wealth would not help matters. Financial literacy is important for people to understand how to make good investments and avoid fraud. It gives knowledge on how to manage and plan for their future,” he said.

According to him, there is need to incorporate financial literacy in school curriculum to enable young ones to understand finance at early stage.

“Early financial literacy can make a child to start saving early in life. It is something the schools and government should do as a way of building students capacity. Our schools are not teaching children enough about finance,” he said.

In his remarks, the Chief Executive Officer the NSE, Mr. Oscar Onyema, said the competition was aimed at exposing Nigerian students and youths to operations of the capital and career choices in the securities markets.

He explained that many Nigerians were financial illiterate, hence the initiative of the essay competition provide youths the ability to understand “how money works, how to put the mind to work in other to make money, how money is managed and invested in other to yield profit.”

Oscar said in line with the philosophy of the competition, winners are given ordinary shares of quoted companies as substitute for cash, and other prices included certificates, plaques and trophies (for the institution of first prize winners only).

Master Moses Ajireloja, a 400 level student of Crops Production at Obafemi Awolowo University, Ile-Ife, Osun State emerged the overall winner of the competition this year.

Tags: Business, Nigeria, Featured, Investors, N1bn, Wonder Banks

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