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Interest rate can’t surpass country’s bond rate-Ezra Olubi



Ezra Olubi

Billionaire Paystack co-founder, Ezra Olubi has said that no institution can guarantee interest rates higher than a country’s bond rate.

He made this disclosure on X (formerly Twitter) in reaction to a tweet from Piggyvest, highlighting their Safe lock interest rates at approximately 12%, to woo BBNaija winner Ilebaye.

According to Olubi, the negative reactions about the interest rate being too small for a year’s worth of saving paints an alarming picture of financial illiteracy and unethical practices prevalent in Nigeria’s financial sector.

Expressing his concerns regarding a recent encounter with a billboard advertisement by a fintech company promising guaranteed interest rates exceeding 20% he said,

“No institution can “guarantee” you interest rates higher than your country’s prevailing bond rates. Anyone doing so to a mass market audience has the responsibility to educate investors on the attendant risks involved. I believe anything short of this is downright unethical.

Olubi recalled a personal experience a few years ago when an acquaintance eagerly shared an investment “opportunity” that would require a significant portion of their savings.

He questioned the rationale behind such investments, asking how their understanding of value creation and basic economics could justify the exorbitant promised returns.

What you should know

Over the years, countless Nigerians have fallen victim to Ponzi schemes disguised as legitimate investment opportunities, resulting in the loss of their hard-earned money.

According to a report by Nairametrics, the Nigerian Deposit Insurance Corporation (NDIC) has reported that Nigerians have collectively lost over N911 billion to Ponzi schemes and similar scams over 23 years.

The impact of these losses on the mental and physical well-being of the average “investor” is significant.

Surprisingly, despite these losses, many desperate Nigerians continue to pursue get-rich-quick schemes. Several factors contribute to the persistent success of Ponzi schemes in Nigeria.

These include the soaring rates of unemployment and poverty, coupled with widespread financial illiteracy.

Additionally, the allure of rapid wealth remains a powerful motivator, rendering individuals susceptible to the siren call of Ponzi schemes.


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