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Ntulma
Asked: 2026-03-24T13:14:44+00:00 In:

How Can I Verify the Authenticity of an Investment Company Before Committing My Money in Nigeria?

A marketer from a particular company approached me to invest with them. What steps should I take to verify the authenticity of that company?

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2 Answers

  2. Edith Ejenavwo
    Starter

    Steps to verify the authenticity of a company: 1. Ensure the company is registered with the Corporate Affairs Commission (CAC) and also regulated by the appropriate body. If it's in the financial sector, it must be regulated by CBN, if it's an investment firm, it must be registered with the SecurityRead more

    Steps to verify the authenticity of a company:

    1. Ensure the company is registered with the Corporate Affairs Commission (CAC) and also regulated by the appropriate body. If it’s in the financial sector, it must be regulated by CBN, if it’s an investment firm, it must be registered with the Security and Exchange Commission (SEC).

    2. Check the total debt v net debt of the company. A company whose net debt is very close or greater than its total debt is not financially healthy.

    3. Insurance: Check if the company is under an insurance cover. In a situation where the company goes bankrupt, and its liquidated assets is unable to clear its debt, who takes up the responsibility?

    4. Check the track record of the company to know how long the company has been in operation. Also check the cash engines of the company, that is, find out how the company generates revenue. A company that has multiple cash engines cannot easily collapse.

    5. Ensure to read the company’s client/customer’s policy. Check if it favours the client or it only/mainly  favours the company.

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