When a stranger sends you a message on WhatsApp and says you’ll be able to double your cash in per week, belief your intestine and stroll away. During the last decade, Nigeria has sadly change into a breeding floor for Ponzi schemes, sucking in hundreds of thousands of individuals with guarantees of outrageous returns and 0 threat.

From glamorous social media campaigns to endorsements by ignorant influencers and even spiritual leaders, these scams have infiltrated almost each layer of our society.

Behind these glittering guarantees lies a path of tears with life financial savings worn out, relationships ruined, properties bought, and in some circumstances, victims pushed to melancholy and even suicide. Ponzi schemes are usually not only a monetary menace, they’re a nationwide plague.

Regardless of a number of incessant warnings, they maintain evolving, generally dressed as agricultural investments, crypto buying and selling platforms, or cooperative societies.

Listed here are seven infamous Ponzi schemes which have wrecked the funds of hundreds of Nigerians, once they occurred, and what the federal government is doing to cease the bleeding.

1. MMM Nigeria -2016

This Ponzi scheme was the one which opened the floodgates. MMM Nigeria, run by convicted Russian fraudster Sergei Mavrodi, promised 30% month-to-month returns for “serving to” others. It collapsed simply earlier than Christmas in 2016, leaving hundreds of thousands stranded and determined. Affected victims had been over 3 million Nigerians with a lack of over 18 billion naira. Even in the present day, its impression lingers in each new rip-off that sounds just a bit too acquainted.

2. Galaxy Transportation and Building Companies -2019

This was a supposed logistics and haulage agency. Got here to us in 2019 and marketed itself aggressively in Lagos and the South-East. It promised to double investments in six months. In a while that 12 months, it crashed, and over 20,000 frantic traders had been left clutching nugatory receipts with a complete lack of over 7 billion naira.

3. MBA Foreign exchange & Capital Funding Ltd – 2020

This Ponzi scheme got here to Nigerians, masquerading as a reputable foreign currency trading agency. MBA Foreign exchange swayed over 10,000 individuals, particularly professionals and retirees, with 15% month-to-month returns and an enormous lack of over 171 billion naira. Its CEO, Maxwell Odum, grew to become a poster boy for luxurious and “sensible investing” earlier than vanishing. The EFCC has since declared him needed, and courtroom proceedings are nonetheless ongoing.

4. Baraza Multipurpose Cooperative – 2021 

Bayelsa-based Baraza lured over 30,000 traders with weekly returns below the duvet of a cooperative society, however by 2021, it grew to become clear it was a rip-off. Pastor George, the founder, disappeared with over 40 billion naira, and hundreds of households, many in rural communities, had been left in ruins.

5. Chinmark Group – 2022

With polished branding, large influencer help and a lack of over 10 billion naira, Chinmark constructed a façade of belief. It promised as much as 30% annual returns on investments in hospitality and logistics. The crash in 2022 left over 4500 individuals, together with college students, pastors, and civil servants, stranded. Its founder, Mark Chinedu, denied wrongdoing, however nobody acquired their a refund.

6. CBEX International/CBBE – 2024

This crypto-style Ponzi scheme that crept upon Nigerians is the newest to implode, and sadly, over 5000 individuals fell for it. CBEX International, also called CBBE, promised returns as excessive as 35% month-to-month. By the 12 months 2025, the platform had gone silent, raking in 3 billion naira from victims, leaving traders locked out of their accounts. So far, many are nonetheless struggling to hint the operators.

Why Ponzi Schemes thrive and what the federal government is doing

Ponzi schemes flourish in onerous financial occasions. When inflation bites onerous, the naira falls, and jobs are scarce, many Nigerians flip to high-risk schemes out of desperation, searching for a shortcut to become profitable and purchase wealth. Sadly, scammers know this and exploit it.

Sadly, Nigeria’s regulatory system has usually been perceived as lax, with authorities reacting too late to cease the injury brought on by Ponzi schemes. Although businesses just like the Securities and Trade Fee (SEC) and the Financial and Monetary Crimes Fee (EFCC) have made strides however this doesn’t take away the truth that enforcement is usually sluggish.

By the point most Ponzi schemes are detected, many Nigerians have already been financially devastated. Moreover, the rise of digital platforms, together with cryptocurrency and foreign currency trading platforms, has made it simpler for fraudulent schemes to flourish.

Regardless of these challenges, the federal government has been making efforts to strengthen the monetary regulatory framework. The Central Financial institution of Nigeria (CBN)and the  SEC have ramped up monitoring, and there have been elevated investigations into unregistered funding platforms. Nevertheless, Ponzi schemes proceed to evolve quicker than the federal government’s capacity to trace them.

How you can Spot a Ponzi Scheme

Right here’s inform if an “funding alternative” is probably going a rip-off:

Unrealistic returns: Something promising greater than 10–15% month-to-month is sort of all the time a pink flag.

No clear enterprise mannequin: If they’ll’t clearly clarify how cash is made, beware.

Aggressive referrals: You’re paid extra for bringing others than for precise returns.

No SEC registration: At all times verify the SEC web site to confirm legitimacy.

No threat disclosure: Each actual funding carries some threat. If they are saying “zero threat,” run.

Ponzi schemes prey on the hope of monetary breakthrough, the hope of a greater life however most of the time, they finish in outright catastrophe. As authorities businesses proceed to tighten rules and lift consciousness, Nigerians should additionally change into extra vigilant, much less determined and most significantly financially literate. If it seems to be too good to be true, it virtually all the time is.