MMM, MBA Biggest Ponzi Scheme As Nigerians Lose Over N911b in 23 Years, SEC Vows to Fight Back

MMM, MBA Biggest Ponzi Scheme As Nigerians Lose Over N911b in 23 Years, SEC Vows to Fight Back

  • The SEC has once again warned investors about the risks of engaging in schemes that promise rapid profits
  • Several Nigerians have been duped out of their hard-earned money through ponzi scams like MMM and MBA throughout the years
  • According to a new estimate, approximately N911 billion has been squandered in ponzi scams over the last 23 years

PAY ATTENTION: How media literate are you? Click to take a quiz – bust fake news with!

Michael Oladele, director of the Bank Examination Department of the Nigeria Deposit Insurance Company (NDIC), said that during the previous 23 years, N911.45 billion had been lost to different Ponzi schemes and associated scams across the country.

He stated this in a presentation at a workshop titled 'Rising Ponzi Schemes and Investment Scams in Nigeria.'

According to Oladele, one of the largest is the N700 billion supposedly locked in private placements in Nigeria in 2016, much as MMM defrauded investors of N18 billion.

Read also

CBN finally speaks on plans to print 5,000 naira notes after a video surfaced online

Ponzi scheme Nigeria
Nigeria loses billions to Ponzi schemes. Credit: @jidi
Source: Getty Images

Others are MBA Forex which defrauded investors of N171 billion, while another N22.45 billion was lost to Nospecto, the Guardian reports.

PAY ATTENTION: Share your outstanding story with our editors! Please reach us through!

SEC vows to save Nigerians from Ponzi scheme

Meanwhile, the Securities and Exchange Commission has informed the investing public that it would continue to use its enforcement procedures, including coordination with other relevant government agencies and stakeholders, to combat Ponzi scheme activity.

This promise was provided by Dayo Obisan, Executive Commissioner Operations, Securities and Exchange Commission at an Investor Education Programme for Federal Road Safety Corps workers in Abuja.

Represented by Director Market Development Department, Nestor Ikeagu, Obisan said these promoters of these unscrupulous schemes pose as operators in the capital market to defraud investors of their money with mouth-watering promises of return on investments.

Obisan said:

“This has made it difficult for investors to differentiate between genuine and false investment opportunities.

Read also

Niger Delta stakeholders deny calling for Gen. Ndiomu's sack

"The activities of these Ponzi schemes promoters have posed a huge challenge to the Commission. In combating them, we collaborate with other agencies to nip their activities in the bud.

Dangote announces plan to employ 300,000 youths, link to submit CV emerges

Meanwhile, the Dangote industries have announced plans to recruit over 300,00 Nigerians in a massive employment drive

A new job recruitment page has been launched for qualified candidates to upload their CV.

The job in its refinery in Lagos includes free accommodation for 20,000 employees.


Online view pixel