Effective Communication: A Panacea to Jigsaw of Ponzi Scheme and Misrepresentation of Investment in Ekiti State Universities, Nigeria
DOI:
https://doi.org/10.33003/fujafr-2026.v4i2.380.480-491Keywords:
Ponzi Scheme, Misrepresentation, Effective Communication, Investor Behaviour, Financial LiteracyAbstract
Purpose: This study examined the effect of Ponzi scheme-related factors on investors’ behaviour among students of Ekiti State University, Ado-Ekiti and Federal University, Oye-Ekiti. The specific objectives were to examine how the frequency of Ponzi scheme exposure affects students’ perception of investment opportunities, determine the relationship between the level of misrepresentation in investment schemes and students’ investment decision-making, and evaluate how the effectiveness of communication strategies influences students’ awareness and prevention of Ponzi schemesamong university students in Ekiti State, Nigeria
Methodology: The study used a survey research design and a structured questionnaire was used to collect primary data for the studywith a total of 394 who were sampled using the Taro Yamane sampling techniquewith proportional distribution across the faculties of the university
Results and Conclusion: Regression analysis was used in the analysis of data. The results indicated that the frequency of encountering Ponzi schemes positively and insignificantly affects students’ perception of investment opportunities. The results further revealed that misrepresentation in investment schemes has a positive and significant effecton students' investment decision-making. Moreover, the study revealed that the communication strategies have a positive and significant relationship with investors in terms of awareness and prevention of Ponzi schemes.
Implication of findings: The results indicate that only awareness of Ponzi schemes will not significantly affect the Student perception of investment opportunities , reflecting the fact that awareness alone is not enough.
References
Akande, J. O., &Ogbeinde, S. O. (2019). Determinants of financial fraud vulnerability in Nigeria: A focus on Ponzi scheme participation. Journal of Finance and Economic Research, 11(2), 44–59.
Asogwa, I. E., Etim, E. E., Etukafia, N. N., Akpanuko, A., &Ntiedo, J. U. (2017). Ponzi schemes and the Nigerian financial system: Implications for investors. International Journal of Social Sciences and Economic Review, 5(1), 21–33.
Azim, M., & Azam, S. (2016). A theoretical perspective on Ponzi schemes and financial fraud. Global Journal of Management Studies, 8(3), 55–67.
Bhattacharya, U. (1998). The South Sea Bubble and historical investment frauds. Financial History Review, 5(2), 1–15.
Business Post. (2017). History of fraudulent investment schemes in Nigeria. Business Post Nigeria.
Eburuaja, P. (2025). Social engineering and discursive deception in Nigerian Ponzi schemes on Facebook. Journal of Digital Fraud Studies, 4(1), 15–33.
Federal Bureau of Investigation. (2017). Financial crimes report: Ponzi and pyramid schemes. FBI Publications.
Garber, P. (1990). Famous first bubbles. Journal of Economic Perspectives, 4(2), 35–54. DOI: https://doi.org/10.1257/jep.4.2.35
Ibekwe, C. C., Onyima, B. N., &Onyilofor, C. S. (2021). Social media influence on fraudulent investment proliferation during COVID-19 in Nigeria. African Journal of Economics and Digital Society, 9(3), 88–104.
Mackay, C. (1841/1998). Extraordinary popular delusions and the madness of crowds. Wiley.
Ndukwe, C. (2016). Historical analysis of financial scams in Nigeria. Journal of African Economic Studies, 6(2), 77–90.
Obamuyi, T. M., Iriobe, G., Afolabi, A., Akinbobola, T., Elumaro, A., Faloye, B., Adepoju, A., & Oni, E. (2018). Psychological and socio-economic determinants of Ponzi scheme participation in Nigeria. Journal of Behavioral Finance and Investment, 10(1), 55–70.
Onyeke, C. (2018). The collapse of MMM and its impact on Nigerian households. Journal of Applied Finance and Economic Development, 7(4), 25–41.
Yagcı, K., Abang, S., &Asangausung, E. (2025). Social network trust and the spread of Ponzi schemes in Africa. African Journal of Cybersecurity and Behavioral Studies, 5(1), 60–79
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Adepoju Adeoba Asaolu
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The FUDMA Journal of Accounting and Finance Research (FUJAFR) operates a copyright policy that ensures a balance between author rights and wide dissemination of scholarly work.
1. Author Copyright Retention
Authors retain full copyright of their published work without restriction. Submission to FUJAFR does not transfer ownership of copyright to the journal.
2. License to Publish
By submitting a manuscript and upon acceptance, authors grant FUJAFR:
- The right to publish, reproduce, and distribute the article
- The right to identify itself as the original publisher of the work
This grant is non-exclusive, meaning authors are free to reuse their work in other contexts, provided proper acknowledgment of the original publication in FUJAFR is made.
3. Licensing of Published Content
All articles are published under the:
Creative Commons Attribution-NonCommercial License (CC BY-NC 4.0)
Under this license:
- Users may share and adapt the work for non-commercial purposes only
- Proper attribution to the author(s) and the journal is required
- Any commercial use requires explicit permission from the copyright holder
4. Author Reuse Rights
Authors are permitted to:
- Archive their published articles in institutional repositories or personal websites
- Share their work for educational and research purposes
- Reuse portions of their work in future publications (e.g., books or other articles), provided proper citation of the original publication is included
5. Third-Party Content
Authors are responsible for obtaining permission to use any third-party copyrighted material (e.g., images, tables, datasets) included in their manuscripts. Proper acknowledgment must be provided where required.
6. Attribution Requirement
All users of FUJAFR content must provide appropriate credit, including:
- Author name(s)
- Article title
- Journal name (FUJAFR)
- Year of publication
