The Managing Director of Sycamore Investment and Asset Management Limited, Gbenga Magbagbeola, has called for a coordinated, multi-sectoral approach to end the wave of Ponzi schemes defrauding Nigerians. In an exclusive interview, Magbagbeola stressed that issuing public warnings is not enough to combat the growing financial scams that have cost citizens billions of naira.
Speaking on the backdrop of Sycamore’s recent transition into a fully SEC-licensed asset management firm, Magbagbeola warned that socio-economic hardship, low trust in traditional financial systems, and financial illiteracy have created a breeding ground for fraudulent schemes offering unrealistic returns.
“When people are desperate to preserve the little wealth they have, they become more vulnerable to schemes that promise the impossible,” he explained. “It’s not just greed—it’s fear, lack of awareness, and limited access to safe investment alternatives.”
Magbagbeola criticised Nigeria’s investment ecosystem for being elitist and exclusionary, noting that traditional asset managers primarily serve high-net-worth individuals and institutions, leaving ordinary Nigerians with few viable investment options.
To counter this, Sycamore is rolling out USD-denominated and inflation-hedged investment products with significantly lower entry barriers. “We are simplifying the investment process for everyday Nigerians, offering user-friendly technology and transparent communication,” he said. “This is our way of restoring trust and curbing the attraction to unregulated platforms.”
With over 300,000 users already on its peer-to-peer lending platform, Sycamore is extending its financial inclusion strategy by integrating asset management services. The company was founded in 2019 by Babatunde Akin-Moses, Onyinye Okonji, and Mayowa Adeosun to address Nigeria’s SME funding gap. Its pivot into asset management is a direct response to growing customer demand for diversified investment solutions.
According to Magbagbeola, the demand for “quick money” schemes is deeply rooted in Nigeria’s unstable economic landscape. High inflation, a weakened naira, and rising unemployment have pushed many citizens to seek fast and often unrealistic returns.
“Social proof plays a big role,” he noted. “When friends or family claim to profit from these schemes, others jump in without questioning the legitimacy. The illusion is amplified by influencers and aspirational lifestyles on social media.”
Adding to the crisis, he said, is the lack of robust financial education. Many citizens cannot distinguish between licensed investments and scams. “The solution lies in public education and creating realistic success stories around wealth built through patience and discipline—not shortcuts,” Magbagbeola said.
The Sycamore MD applauded the recent enhancement of Nigeria’s Investment and Securities Act (ISA), particularly the formal recognition of digital assets. He believes this is a step toward safeguarding investors in an increasingly tech-driven financial environment.
“Regulation must keep pace with innovation,” he stated. “Recognising crypto and other digital assets helps create a clear legal framework, encouraging legitimate innovation while deterring fraudsters.”
Magbagbeola emphasised the role of both regulators and financial firms in reshaping Nigeria’s investment culture. “We cannot simply tell people not to fall for Ponzi schemes. We must build better, more attractive alternatives and educate people on how they work.”
Sycamore’s scalable digital platform is designed to operate in low-bandwidth environments, making investing more accessible to underserved populations. With artificial intelligence powering its market analysis and portfolio management tools, the firm offers highly personalised investment options while ensuring data security and compliance.
“Risk management doesn’t have to be intimidating,” Magbagbeola said. “We use simple language, visuals, and real-life examples to help users understand their investments, align with their goals, and make informed decisions.”
Magbagbeola projected that over the next five years, the Nigerian asset management industry would undergo a significant transformation driven by technology, personalisation, alternative assets, and impact investing.
“There’s growing interest in sustainable and value-driven investing. Investors no longer just want profit—they want purpose,” he said.
Sycamore, which now manages over ₦10 billion in assets, is positioning itself to lead that future by building cross-border capabilities, creating fractional access to alternative assets like real estate, and leveraging fintech for rapid innovation.
“We’re not just responding to change—we’re driving it,” he concluded.