Building Trust in Nigeria’s Financial System: An exclusive interview with Temitope Ijibadejo, Africa Regional Director, SquaredFinancial – Businessday NG

Trust remains one of the most critical elements of any financial system. In Nigeria, however, the challenge of rebuilding public confidence after years of Ponzi schemes, failed investment houses, and weak regulation continues to dominate public discourse. BusinessDay sat down with Mr. Temitope Ijibadejo, Africa Regional Director for SquaredFinancial, to discuss why trust deficits persist, why Ponzi schemes continue to thrive, and what must be done to restore confidence in Nigeria’s financial markets.

BusinessDay:
When we talk about trust deficits in financial markets, how does Nigeria compare to other global markets you’ve seen?

Temitope Ijibadejo:
Frankly, the trust deficit in Nigeria is very high compared to developed markets such as Europe and Asia. In those markets, people generally have more faith in financial institutions because regulatory frameworks are stronger, enforcement is consistent, and economic systems create more opportunities for people to thrive legitimately.

In Nigeria, years of negative experiences with Ponzi schemes, failed banks, and unregulated investment platforms have eroded that trust. Add economic pressures—like inflation, unemployment, and limited access to quality investment opportunities—and people become more vulnerable. Many are simply looking for ways to survive. That desperation, unfortunately, creates fertile ground for mistrust and manipulation.

BusinessDay:
Why do Ponzi schemes seem to thrive particularly well in Nigeria? Is this purely about desperation, or is it more about institutional weaknesses?

Temitope Ijibadejo:
It’s a combination of both. Ponzi schemes are cleverly disguised as legitimate investment opportunities. They promise extraordinary returns with little or no risk, and that appeals to anyone, regardless of their economic class. In fact, it’s not just the poor that fall for Ponzi schemes; many wealthy and educated people have also lost money.

But in Nigeria, the environment makes it easier for such schemes to flourish. With limited employment opportunities, weak savings culture, and gaps in financial literacy, people are actively seeking ways to multiply their income. When someone dangles the promise of doubling your money in weeks, it sounds irresistible.

The institutional weaknesses also play a role. Until recently, enforcement was reactive rather than preventive. By the time regulators clamped down on Ponzi operators, millions had already been defrauded. This cycle has repeated itself too many times.

BusinessDay:
Speaking of regulators, what role do they play in curbing this menace?

Temitope Ijibadejo:
Regulators like the Securities and Exchange Commission (SEC) have an enormous role to play. I will commend the SEC for ramping up mass awareness campaigns in recent years, warning Nigerians about fraudulent schemes. They’ve also started collaborating more closely with agencies like the EFCC to track perpetrators.

But enforcement alone is not enough. The real challenge is to stay ahead of these fraudsters. Ponzi operators are constantly evolving; they take advantage of new technologies, social media platforms, and even cryptocurrency hype to lure unsuspecting investors. Regulators must be as innovative and fast-moving as the criminals they are trying to stop.

BusinessDay:
What then are the limitations of these institutional agencies?

Temitope Ijibadejo:
For a long time, regulators were handicapped by weak legal backing and bureaucratic processes. However, with the new Investment and Securities Act (ISA2025) policy recently signed into law, the SEC now has more power to clamp down swiftly on perpetrators. This is a step in the right direction.

Still, resources remain a limitation. Effective oversight requires manpower, technology, and funding. Agencies need tools that allow them to monitor suspicious activities in real-time, not months after people have already lost money. There is also the need for deeper collaboration between regulators and financial institutions themselves.

BusinessDay:
From your perspective, what are the key red flags ordinary Nigerians should watch out for to identify a Ponzi scheme?

Temitope Ijibadejo:
The signs are usually obvious if you take a step back. First, any investment promising very high returns in a very short time with no risk is a red flag. In finance, there is no such thing as “high returns without risk.”

Second, Ponzi operators often pressure people to invest quickly—“limited slots,” “don’t miss out,” and so on. Third, they rely heavily on referrals. If you’re being told you must bring others in to keep the scheme going, that’s a Ponzi model. Finally, the lack of transparency is a giveaway. When you can’t verify how the money is being invested or who the operators are, run.

BusinessDay:
Looking forward, what are your solutions and suggestions for restoring confidence in Nigeria’s financial system?

Temitope Ijibadejo:
We must approach this on multiple fronts.
First, financial literacy is critical. People need to understand how investments work, what risks are involved, and why sustainable returns take time. Financial education should not just be in English—it should be delivered in local dialects so that grassroots communities understand the message.

Second, we must strengthen institutional policies. Regulators should not just chase Ponzi operators after the act; there should be clear preventive frameworks, harsher penalties, and faster prosecution of offenders.

Third, there must be a cultural shift towards contentment and patience. The obsession with “quick money” is deeply ingrained in our society, and we must counter it with education and awareness. Wealth creation is a process, not an overnight miracle.

Finally, financial institutions themselves must take responsibility. Banks, fintechs, and asset managers need to design more accessible, trustworthy investment products for ordinary Nigerians. When people see viable alternatives, they are less likely to fall for Ponzi promises.

BusinessDay:
In one sentence, what message would you like to send to Nigerians navigating today’s financial landscape?

Temitope Ijibadejo:
I’ll say this: if it sounds too good to be true, it probably is. Educate yourself, ask questions, and remember that trust in our financial system can only be rebuilt if we all play our part—regulators, institutions, and individuals alike.