Following the daily increase in the number of people trooping into different wonder banks which are currently making waves in the country with the most popular being MMM, the Federal Government of Nigeria has initiated moves to shut down MMM operations in Nigeria.
According to the Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, regulators have set up a Committee to stem the nefarious activities of the fraudsters across the country.
Speaking on Monday, November 7th, during the NDIC Special Day at the 2016 Lagos International Trade Fair, Umaru said:
“I wish to sound a word of caution to members of the public on the activities of illegal fund managers, otherwise known as Wonder Banks.
“It is worrisome to note that despite repeated advice, many unsuspecting members of the public are still falling victims to the mouth-watering interest being offered by these illegal fund managers.
“Members of the public are therefore advised to patronise only banking institutions that display the NDIC sticker: “Insured by NDIC” in their banking halls or entrances.
“However, the regulatory authorities have set up an inter-agency committee under the Financial Services Regulatory Coordinating Committee(FRSCC) to stem the nefarious activities of these fraudster across the nation”.
The Central Bank of Nigeria had warned citizens at different times to beware of MMM saying it was fraudulent since it does not have the backing of any business model.
Despite the warning however, millions of Nigerians who are involved in the money doubling venture are insistent on continuing with the MMM as a result of the prevailing tight economic condition in the country in addition to the huge unemployment situation.
Many people have described the scheme as the saviour of ordinary Nigerians as it allows the investing public to participate in what it called “mutual aid financial network,” with a monthly investment return of 30 per cent.