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86FB: Why Nigerians keep investing in Ponzi schemes

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86FB: Why Nigerians keep investing in Ponzi schemes

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The recent crisis affecting gambling and investment service platform, 86FB has been a rude reminder to many Nigerians of the disadvantages of investing in Ponzi schemes and unverified investment platforms that promise higher than average mouth-watering yields.

The activities of Ponzi scheme operators have been on the increase in Nigeria, especially in the last decade. Nigerians will not forget in a hurry, Mavrodi Mundial Movement (MMM) which is perhaps the most popular Ponzi scheme ever introduced into Nigeria. When the scheme finally crashed in 2016-2017, the CBN revealed that N12 billion was lost by investors.

Since MMM, several others have come in and repeated the same cycle with many more Nigerians falling victim to these scams. The list includes Dantata Success & Profitable Company, Ultimate cycler, MGB Global, Bitcoin Company, Money Rite, No Failure Development, and X-World, Imagine Global Holdings Company Limited, most of which have been shut down by the Securities and Exchange Commission (SEC).

Nigerians have shown time and again that they have a high appetite for high-risk, high-return investment, regardless of the lack of a business model inherent in most of these schemes. Many are ever willing to rush into the next get-rich-quick-scheme.

Taking advantage of the country’s large population and woeful economic condition, Ponzi scheme founders are ever-ready to introduce their scam to Nigeria as quickly as possible.

Why do Nigerians still fall for…

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