Despite repeated warnings, investment scams continue to drain billions from citizens
LAGOS — The recent looting of CBEX’s Ibadan office has reignited concerns about Nigeria’s persistent Ponzi scheme epidemic. Since 2016, fraudulent investment platforms have stolen billions from hopeful Nigerians, with scammers constantly repackaging the same deceptive models.
The Evolution of Nigeria’s Ponzi Crisis
1. The MMM Era (2016)
The mother of all Nigerian Ponzi schemes, MMM Nigeria promised 30% monthly returns before collapsing spectacularly in December 2016. Its crash left millions financially devastated while spawning countless imitators.
2. The Copycat Wave (2016-2017)
Platforms like Ultimate Cycler, Twinkas, and iCharity Club exploited MMM’s collapse, using cycling models where payouts depended on constant recruitment. NNN Nigeria and RevoMoney later repackaged the same scam.
3. Crypto-Fraud Hybrids (2018-2019)
As cryptocurrency gained popularity, schemes like Bitclub Advantage and Million Money disguised Ponzi structures as blockchain investments. Social media-driven scams like Loom Money went viral before inevitable collapse.
4. Regulatory Targets (2020-2021)
The SEC shut down InksNation’s “poverty-ending” digital currency, while platforms like Racksterli and 86FB used influencer marketing and betting gimmicks to defraud users.
5. The Digital Shift (2022-Present)
Recent scams like FINAFRICA (forex trading), Royal Q (fake crypto bots), and CBEX (digital asset exchange) demonstrate scammers’ increasing sophistication in mimicking legitimate fintech platforms.
Why Nigerians Keep Falling Victim
- Desperation: High unemployment (33%) drives risk-taking
- Financial Illiteracy: 65% of adults lack basic investment knowledge (EFInA 2024)
- Social Proof: Reliance on peer testimonials over due diligence
- Greed: Temptation of “too good to be true” returns (often 50-100% monthly)
Protecting Yourself
The SEC advises:
✔️ Verify registration status of investment platforms
✔️ Reject promises of guaranteed high returns
✔️ Avoid pressure to recruit others
✔️ Consult licensed financial advisors
Key Statistics:
- $3.2B+ lost to Ponzis since 2016 (SEC estimates)
- 92% of schemes collapse within 2 years
- Only 3% of victims recover funds
Investigations reveal these schemes typically collapse within 6-18 months, always when recruitment slows. Stay vigilant—if it sounds too good to be true, it certainly is.
