Nigeria Against Ponzi Schemes: What The Government Is Doing


Through collaborated efforts, the Economic and Financial Crimes Commission, EFCC, and the Securities and Exchange Commission, SEC, have declared total war on fraudulent operators, (Ponzi Schemes) in the Nigerian capital market.

To this effect, a Memorandum of Understanding, MoU was signed on Thursday for cooperation between the heads of both commissions – EFCC’s Ibrahim Magu, and SEC’s Mournir Gwarzo, at the EFCC head office, Abuja.

Stressing that many Nigerians are now at the mercy of various Ponzi schemes such as the popular Mavrodi Mondial Movement, MMM, Get Help Worldwide, iCharity, etc, Magu called for both agencies to “pool resources together” in dealing with the alarming menace.

Also Read: CBN’s Warning On The Dangers Of Patronizing Bitcoins, Others

Similarly, Gwarzo, declared that the signing of the MoU will send a strong warning to fraudsters adding that, “any operator of the capital market that crosses the red line will certainly be dealt with”.

scam via Ponzi Schemes

Through this collaboration, the EFCC will provide the law enforcement muscle to give bite to SEC’s regulatory mandate in the capital market.

Meanwhile, the cracks within the MMM Nigeria community have continued to widen with many of its participants losing patience and trading accusations due to their inability to get their money out of the scheme after waiting for more than a month.

Participants confidence in the scheme is obviously on a decline, with many questioning its mode of operation and faulting explanations offered by guiders, since its return on January 13.

The discontent with MMM became evident this week after all payment (Get Help) requests by participants were removed by the scheme. The development meant that even the poor or small investors that the scheme said upon its ‘return’ on January 13 it would pay before higher investors were equally frozen out.

Read Also: MMM To Pay 40 Percent To Participants – Would That Change Your Mind?

Some disgruntled and aggrieved participants have accused the guiders of collapsing the system, and called for them to provide help to sustain the system. Some others have begged those behind the scheme to pity them, while others were worried about the growing panic and negative reports it would generate for the scheme.