The Rise and Fall of Ponzi Schemes in Nigeria: A Decade of Financial Woes
The Rise and Fall of Ponzi Schemes in Nigeria: A Decade of Financial Woes
In recent years, Nigeria has witnessed a proliferation of Ponzi schemes, with numerous investment scams emerging and collapsing, leaving countless individuals financially ruined. This article provides a comprehensive list of Ponzi schemes that have operated in Nigeria over the last decade, highlighting the country’s vulnerability to these types of investment scams.
Between 2016 and 2024, no less than 40 Ponzi schemes have been identified, with some of the most notable ones including:
* 2016: A year that saw the emergence of several Ponzi schemes, including MMM Nigeria, Ultimate Cycler, Get Help Worldwide (GHW), Twinkas, lcharity Club, Crowd Rising, Claritta, Help2Get, Loopers Club, and Givers Forum.
* 2017: This year witnessed the rise of NNN Nigeria, MMM Cooperation, GCCH (Global Crediting Cooperative Hub), Money Riot, RevoMoney, SwissGolden (Nigeria version), NNU (Nigeria News Update), Peer2Peer Donation, Twinkas Reloaded, Donation Hub, MyBonus, and ZarFund.
* 2018: Bitclub Advantage, Million Money, Helping Hands International, DGSOUK, Pennywise, and other schemes emerged, promising unusually high returns on investments.
* 2019: Loom and Crowd1 were among the Ponzi schemes that gained popularity, only to eventually collapse.
* 2020: Lion’s Share, InksNation, Baraza Multipurpose Cooperative, and Racksterli were some of the schemes that operated during this year.
* 2021: 86FB (aka 86Z), Eagle Cooperative, Royal Q (Nigerian scam version), and FINAFRICA were among the Ponzi schemes that emerged.
* 2022: Ovaioza Farm Produce Storage, QNet (Nigeria), Afriq Arbitrage System (AAS), MBA Forex, Chinmark Group, Inksledger, and Axim Exchange were some of the schemes that operated during this year.
* 2023: CALA (Cala Finance) and 6Dollars Investment were among the Ponzi schemes that emerged.
* 2024: Compoundly is one of the latest Ponzi schemes to have been identified while SCI shops frisked Nigerians in well designed ponzi scheme that rewarded people massively, built confidence and scammed all.
The list of Ponzi schemes in Nigeria is a stark reminder of the country’s susceptibility to investment scams.
These schemes often promise unusually high returns on investments, only to collapse, leaving investors with significant financial losses.
It is essential for individuals to exercise caution when investing in any scheme, conducting thorough research, and verifying the legitimacy of the investment opportunity before parting with their hard-earned money.
The Nigerian government and regulatory agencies must also take proactive steps to prevent the proliferation of Ponzi schemes, protecting citizens from financial exploitation. By educating the public about the risks associated with these schemes and implementing effective measures to detect and prosecute perpetrators, Nigeria can reduce the incidence of Ponzi schemes and promote a safer investment environment.
However, a new legislation is in the works which prescribes 20 years imprisonment and heavy fine for perpetrators. When fully operational, it may serve to deter the malaise.
