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Losses To MMM Ponzi Scheme By Nigerians Amount To N18b

Losses To MMM Ponzi Scheme By Nigerians Amount To N18b

The Oasis Reporters

March 2, 2017

An ‎estimated three million Nigerians lost about N18 billion in the Mavrodi Mundial Movement (MMM) ponzi scheme by participating Nigerian subscribers , so declared the Nigerian Deposit Insurance Corporation (NDIC).
And they should know.

This was revealed in Kaduna on Thursday by the Managing Director of the corporation, Umaru Ibrahim. He spoke at the NDIC day in the ongoing 38th Kaduna International Trade Fair.

Represented by NDIC’s Deputy Director Corporate Affairs, Hadi Suleiman, Ibrahim noted that despite repeated warnings by the Central Bank of Nigeria (CBN) and other agencies like the Economic and Financial Crimes Commission (EFCC), Nigerians still patronised the ponzi scheme.

He said that over three million Nigerians were participating in the scheme before December 2016 when organisers suspended payment to investors due to its system. Suspending it was the crunch, such that by the time the scheme returned in January, few new investors joined and the millions waiting for their payments were left disappointed with majority never paid.

He noted that financial deals done through any ponzi scheme in form of virtual currencies such as Bitcoin, Ripples, Litecoin, and Onecoin as currencies for medium of exchange, is not authorised by the CBN because of the risks involved in its operations.

To him, it’s still risky getting involved in such schemes .

“The ponzi scheme is the phenomenon of illegal fund managers, popularly called Wonder Banks which have continued to defraud unsuspecting members of the public of their hard earned money,” he said.

“This phenomenon has been a source for concern because despite our repeated warnings over the years, some members of the public have continued to fall victims of their fraudulent practices.

“We would like to reiterate the fact that these fund managers are illegal as they are neither licenced by the CBN to take deposits from members of the public nor are those who patronise them covered by the NDIC deposit insurance scheme.”

Greg Abolo

Blogger at The Oasis Reporters.

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