Overcoming Money Fears: How to Invest Safely in a World of Scams and Uncertainty
From Ponzi schemes and fake forex platforms to the recent crypto market collapse, Nigerians are understandably wary of where to put their money. But here’s the truth avoiding investment altogether doesn’t remove the fear; it only keeps you stuck in a cycle where inflation and bank charges quietly eat away your savings.
In the latest episode of Everyday Money Matters on Nairametrics TV, host Segun sits down with Hossana Chikwado, Portfolio Manager and Founder of Chikwado Group, to break down the fears, scams, and safe ways to start investing even if you’ve been burned before.
Why You Must Invest Even If You’re Scared
Hossana begins by addressing one of the biggest misconceptions many people have: that saving money in a bank is safe and smart. While it may feel secure, it’s actually one of the easiest ways to lose value silently.
“The fundamental reason to invest is to combat inflation and bank fees,” Hossana says. “Keeping money idle means its value is being eaten away.”
For instance, if inflation sits at 25% and your bank offers 5% interest, you’re effectively losing 20% in real terms each year. That’s why investing not saving is your best defense against the rising cost of living.
He adds that fear is normal, but understanding how investments work helps turn that fear into confidence. “You don’t overcome fear by avoiding risk,” he says. “You overcome it by understanding and managing it.”
Traditional Asset Managers vs Hedge Funds: What You Should Know
The conversation also dives into the different types of investment firms, emphasizing the importance of regulation and transparency.
Hossana draws a clear line between traditional asset management firms and hedge funds:
| Type | Who It’s For | Regulation | Risk Level | Public Visibility |
|---|---|---|---|---|
| Traditional Asset Managers | Everyday investors | Heavily regulated by SEC | Moderate | Public-facing & transparent |
| Hedge Funds | High-net-worth individuals | Less public oversight | High (uses leverage) | Private & complex |
He advises that retail investors everyday people trying to grow their wealth should stick with licensed asset managers or registered platforms rather than chasing “exclusive” high-return schemes that often end up being scams.
“If it sounds too good to be true, it usually is,” he warns. “Legitimate investments take time and come with regulated, transparent operations.”
The Rise of Scams: How to Spot Fake Platforms
Nigeria has seen a wave of investment fraud from crypto scams and Ponzi schemes to fake forex trading apps promising quick profits.
Hossana emphasizes that doing your homework is the first step to staying safe:
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Verify registration: Only invest through companies licensed by the Securities and Exchange Commission (SEC) or Central Bank of Nigeria (CBN).
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Check for transparency: Legit firms disclose who manages your money and where it’s invested.
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Be wary of high returns: Any platform promising guaranteed 20% monthly returns is a red flag.
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Test customer service: Real firms have responsive teams, not anonymous Telegram or WhatsApp groups.
He adds that many fraudulent schemes use social media influencers or fake testimonials to lure people in. “A verified Instagram page doesn’t make a platform legit. Regulation does,” he stresses.
Managing Risk: The Secret to Sustainable Wealth
According to Hossana, successful investing is less about finding the “next big thing” and more about understanding risk.
He explains that all markets stocks, real estate, crypto, and forex come with some degree of uncertainty. The only truly risk-free options are government-backed securities like Federal Government Bonds or Treasury Bills.
“Even with the best strategy, returns are never guaranteed,” he explains. “That’s why your focus should be on risk management, not quick riches.”
He recommends starting small, diversifying across asset classes, and investing regularly rather than trying to time the market.
A simple example?
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Allocate 50% to stable assets like government bonds or money market funds.
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Put 30% into long-term growth investments like stocks or mutual funds.
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Keep 20% for high-risk, high-reward assets like startups or crypto if you can afford to lose it.
Breaking the Cycle of Fear
Many Nigerians have become risk-averse after losing money in scams or speculative markets. But Hossana says the solution is not to give up it’s to learn and rebuild confidence through safe, informed investing.
“If you’ve been scammed before, don’t let it define your financial future,” he advises. “Start small, use regulated platforms, and educate yourself. That’s how you grow again.”
He also encourages developing money habits that build long-term financial security:
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Automate monthly investments.
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Review your portfolio every quarter.
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Avoid emotional decisions both greed and panic.
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Stay informed with credible financial sources like Nairametrics.
Final Take: Turning Fear into Financial Freedom
This episode of Everyday Money Matters isn’t just about spotting scams it’s about reclaiming your confidence as an investor.
Segun and Hossana’s discussion reveals that fear is not the enemy ignorance is. When you understand how investing works, where the risks lie, and how to protect yourself, fear transforms into power.
Whether you’re a first-time investor or recovering from a bad financial experience, the message is clear:
Start small, stay informed, and invest smart because the biggest risk is doing nothing.
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