Opinion/Feature
How Ponzi Schemes Are Destroying Lives In Nigeria
Over the last decade, Nigeria have, increasingly been plagued by the rise of Ponzi schemes, which have lured thousands of unsuspecting investors with the promise of high returns on their investments.
Ponzi schemes are fraudulent investment schemes that promise high returns with little or no risk to investors.
These schemes have become a common occurrence for decades in Nigeria with many Nigerians victims to these fraudulent investment schemes.
The scheme pays returns to earlier investors using the capital of new investors rather than generating profits from legitimate investments.
According to Nigeria’s Securities and Exchange Commission, available data generated by the Norrenberger Financial Investment scheme last month, suggests that Nigerians have lost over N300bn to ponzi schemes over the last five years.
One of the most notorious Ponzi schemes in Nigeria, MMM, was launched in 2016 and promised investors returns of up to 30 percent per month. At its peak, MMM had over three million participants in Nigeria alone, with some estimates suggesting that the scheme had attracted as much as $50 million in investment.
Beyond the numbers, Biztellers looks at how this phenomenon have destroyed lives of families that have fallen victim over the years.
Many victims of Ponzi scheme have lost their lives due to depression, those who survived ,have become shadows of their former selves. Such is the case of two brothers, Ifeanyi Eze and Promise Eze who are yet to recover from their depressed condition after a failed investment worth millions of naira sometime in 2021.
According to the mother of the victims, she explained that both boys had invested five million naira, in a Ponzi scheme and the money was supposed to be for a business startup. They were assured of good returns but they were disappointed as the scheme crashed and nothing was learnt of it afterwards.
In her words: “I am in deep sorrow from what happened to my only two sons. I have tried everything medically and otherwise to address the problem but it has proved abortive. It started when they received the sum of five million naira from a relation to start a business but one afternoon, I saw them making some calculations with one of their friends. I didn’t know that these boys were planning their way to their current situation because after some months, we discovered that they had gambled with that money.
“After much interrogation and findings, we discovered that they had invested that money in a network and as soon as they invested the money, the platform crashed. I was very mad at them. When they got to know about the situation that the scheme had crashed and had no way to communicate with the company, my boys went into serious depression.
“They mostly stayed indoors. This happened for months until we began to notice that Ifeanyi would be speaking loudly to himself. We have tried several medications which didn’t help and this continued for a very long time until one day when he got so angry, stripped himself naked and ran away from the house. He was however brought back home with the help of friends.
“Promise on his part also talks to himself and does nothing although he has been trying to come out of the situation. We have spent a lot of money on drugs just to redeem these children but we have not been successful. The situation keeps getting tougher. When we went to the hospital and the boys were examined, the doctor explained that their current condition was as a result of depression following a failed investment which affected them.
Another case is that of one, Mrs Chineye Chibuzor, who had invested about 15 million naira into a Ponzi scheme that swindled scores of Nigerians in 2021. According to her, the scheme appeared different and promising at the time so she decided to invest 15 million into it.
She said, “I was honestly deceived by what I saw. The founder appeared to be a man of God who drew many of his workers to Christ.
“But, shockingly, just when I invested 15 million naira which was my second investment, everything went into thin air. Since that investment, my marital life has not remained the same because my husband who stays abroad warned me and asked me to use that money for business but I was deceived. It took a lot from my marriage because after the whole thing my husband changed his attitude towards me and ever since I have been trying to work things out”.
She, cautions Nigerians against quick money “and stay away from anything that seems too good to be true.”
A former student of the University of Port Harcourt, Ademola Mutiu, who also fell victim to the ponzi scheme said, “I actually invested money during the time that many Nigerians were swindled by a very popular ponzi scheme.
“Since that time I have not recovered till now. I have been damaged. I was trying to double my school fees, so I invested in it and the scheme crashed. I could not raise more money to pay for my school fees because my parents were very angry with me.
” I could not get the money early enough so the vice chancellor of my school asked those who couldn’t pay to leave and our admissions were withdrawn. Since then my parents asked me to go into tailoring and that is what I have been doing since then.”
Another youth, a writer, Femi Ayajo said, “My elder brother warned me about stuffs like that: The first one in 2019, I lost #2500 in NNU forum. I got people to join. I wanted the referral bonus and the daily login bonus. 20k was coming at the end of the month. I already planned how I’ll upgrade my wardrobe and buy better food. I was so confident it won’t crash. My brother laughed at me and said, “You’ll soon learn.” I no hear word.
“Sadly, on withdrawal week ooo, I requested for withdrawal, till today, I no see shi shi. What pained me the most was my friend that opened like 4 accounts. I opened 2 accounts. I read daily news tire . I still no hear word. December 2021, I invested 10k in one football stuff like that.
“This one looked sure like every other ponzi-scheme but omoooooooooo, na mumu I be. After I got paid by a customer, I took 10k out of what I had and forgot it there. This one didn’t pain me like the first one because I wasn’t doing the work.
“I did it because everyone was talking about it and I didn’t want to miss out of the opportunity. Close friends and even church members don use this one gbope. People have used it to start businesses. But las las, victim no go learn. I bear the pain in this one like the man that I am.”
Ayajo further advised Nigerians against ponzi scheme, he said: “There’s no cheat code to wealth. Go learn a high-income skill.”
A former corp member, Opeyemi Hamzat also said: “Well, it started when someone introduce me to one Ponzi website where I will be able to earn a certain amount daily by reading news and sharing it on my social media pages, logging in daily, and some other things( which I can’t recall), I paid an activation fee of 5000 which is a one-time payment and to also refer people as it is necessary for my withdrawal.
“From there on, I was told my earnings will be paid at the end of each month once u reach the monthly withdrawal target. At the end of the month, I couldn’t withdraw my earnings, that is when I know that I have been scammed.”
Biztellers also spoke with an “expert” investor in Ponzi scheme Etim Unyime, who is both beneficiary and victim of ponzi scheme, he said: “I’ve been scammed and that’s it. I can’t begin to recall the amount because it’s much. I’ve lost over $6k to ponzi. I’ve also made more than that after it happened.
” So it’s relative. I’ve actually made more than I’ve lost but the most I’ve lost at once is $6k. In others, I get back my capital investment before it gets busted. The key is not to be greedy.”
Despite the sad stories of most of it’s victims, ponzi schemes continue to thrive in Nigeria and many more such schemes continue to spring up with the sole intent of defrauding.
The success of MMM and other Ponzi schemes in Nigeria can be partly attributed to the country’s economic situation. Nigeria has been facing a number of economic challenges in recent years, including high unemployment, inflation, and a scarcity of foreign exchange.
These conditions have left many Nigerians struggling to make ends meet, with some turning to high-risk investments in the hope of making quick profits.
Another factor contributing to the success of Ponzi schemes in Nigeria is a lack of financial literacy. Many Nigerians are not well-educated about the risks and rewards of investing, and are easily swayed by promises of high returns.
The culture of greed that pervades the Nigerian society is another factor that has contributed to the success of Ponzi schemes.
In a country where wealth is highly prized and social status is often tied to one’s material possessions, the promise of quick profits can be alluring.
Some Nigerians are willing to take on significant risks in order to achieve financial success, even if it means participating in a scheme that is clearly fraudulent, diving into it with all their earnings.
Nigerian celebrities coming out to promote this fraudulent schemes, knowingly misleading their followers and encouraging them to invest in a scam that will inevitably collapse, causing significant financial harm to them, is also another factor contributing to the popularity of Ponzi schemes in the country. From A-rated celebrities to B-rated celebrities, various Nigerian celebrities have been guilty of promoting these schemes over the years.
Despite the prevalence of Ponzi schemes in Nigeria, very few perpetrators of these fraudulent schemes have been prosecuted.
This is primarily due to a lack of effective regulatory frameworks and law enforcement agencies that are equipped to tackle financial fraud.
Many Ponzi scheme operators in Nigeria operate without any form of licensing or regulation, making it difficult for authorities to track their activities.
The lack of regulatory oversight allows these operators to continue their fraudulent activities with impunity, and they are often able to defraud thousands of unsuspecting investors before being caught or they go scot free.
Also, another reason Ponzi scheme operators in Nigeria have evaded prosecution is the slow pace of the legal system. Cases can drag on for years in Nigerian courts, and by the time a verdict is reached, the scheme operator may have disappeared or died.
A perfect example of this is Ovaiza. No one knows the outcome of her case up until now. Furthermore, the burden of proof in financial fraud cases can be challenging to meet, and evidence can be difficult to obtain.
However, the national assembly recently proposed jail terms for Ponzi scheme promoters.
The bill which is only awaiting presidential assent to become law was stated by the Senate President, Ahmad Lawan at the plenary, that the bill is expected to protect investors, adequately regulate the market, reduce systemic risks as well as provide for more stringent punishment for operators of Ponzi schemes.
While this is good news, without fixing the issue of lack of effective regulatory frameworks, a slow legal system, corruption within law enforcement agencies, it will still be difficult for financial fraudsters operating Ponzi schemes in Nigeria to be brought to justice.
NEWS
Edo Govt To Raise N160bn For Climate Project While Kidnapping Ravages The State… Is That What The People Need?
As kidnapping and violent crime continue to escalate across Edo State, the government has announced plans to raise N160 billion to tackle ecological challenges, raising serious questions about priorities in the state.
The Executive Chairman of the Edo State Ecological Fund and Management Commission, Blessing Agbomhere, revealed during a press briefing on Wednesday that the funds would be raised through the Ecological/Climate Trust.
According to him, the Okpebholo Green Revolution for Edo is scheduled to launch next week.
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Agbomhere stated that Edo’s three-year budget would not be enough to remediate gully erosion sites across the state.
The over 60 gully erosion sites identified would be addressed in phases, with some remediation projects costing between N5 billion and N20 billion each.
The government also plans to plant one million trees in four years.
He further raised concerns over illegal sand mining, particularly in Edo South Senatorial District, revealing that many operators have no plans to restore the land after their operations, which continues to exacerbate erosion problems.
“A lot of companies are operating in Edo State. After their operation, they will leave the state without remediating the environment. We are calling on them to tell us their plans for remediation when they leave,” Agbomhere said.
While ecological initiatives are undeniably important, the timing and focus of the government are being questioned.
Kidnapping and insecurity are surging across the state, yet attention and resources are being directed toward environmental projects instead of immediate security measures.
At a time when fear dominates daily life for Edo citizens, raising millions for ecological projects while kidnappers roam freely sends a troubling message: are citizens’ lives being sidelined in pursuit of long-term environmental goals?
Biz Tellers raises the concern: shouldn’t security take precedence over climate projects when residents’ lives are under threat? The government insists that addressing ecological challenges is crucial for long-term development, but for many, this does not answer the urgent question of public safety.
As Edo faces both ecological and security challenges, the debate over government priorities intensifies.
The pressing question remains: is this really what the people need right now?
By Fred Itua
Godwin Obaseki’s latest outburst is not a surprise. It is simply the continuation of a pattern that Edo people came to recognize too late. His years in office were marked by intolerance, vindictiveness and a violent streak that constantly simmered beneath the surface. Those who worked closely with him still carry the scars of his temperament. His former deputy, Philip Shaibu, is the most glaring example.
Whatever their disagreement may have been, no rational leader plots the humiliation and removal of a deputy he once described as a brother. Yet Obaseki manipulated every institutional lever available to him to settle a personal score, using the House of Assembly as a pawn to crush a man whose only crime was falling out of favour with the lord of Osadebe Avenue.
In October 2022, Obaseki’s hateful tendencies were expended on those he promised to serve. He supervised the demolition of roughly one hundred homes across Oke-Oroma, Irhirhi-Obazagbon and Ogheghe communities. Residents insisted they held valid documents, including Certificates of Occupancy, yet he pushed ahead in defiance of a subsisting court order that had restrained any action pending the determination of their suit. The result was devastating. Thousands were displaced and property worth billions of naira were reduced to rubble. Such a vindictive man!
Edo people saw the full extent of this violence during the 2024 governorship election when Obaseki stood before cameras and threatened that Edo would burn if his preferred candidate lost. Those words were not the empty rant of a frustrated politician. They came from a man with a history of weaponizing state power, a man whose administration armed loyalists and created networks of political enforcers who blended easily into the criminal elements that then turned their guns on innocent citizens.
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It is no coincidence that the early days of the current administration were choked with spikes in kidnapping and armed robbery. These were not random crimes. They were the desperate convulsions of an ecosystem built, funded and empowered by Obaseki himself.
Governor Monday Okpebholo has had to stabilize a state that was deliberately left volatile. Through calm leadership and quiet strength, he has managed to rein in the chaos and restore public confidence. But Obaseki, instead of retreating into reflection, has doubled down.
His recent video in Birmingham reveals a man who cannot bear the reality that Edo people have moved on. He accused Okpebholo of being “stupid”, boasted that he is mobilizing the international community against him and President Bola Ahmed Tinubu, and threatened that the governor “will see”.
These are not harmless statements from an angry former office holder. They are calculated threats from someone who has never hidden his desire to destabilize Edo State whenever power slips from his grip.
He claims that a governor from Irrua cannot dictate to people in Benin. That remark alone exposes the dangerous tribal undertone of his politics. For eight years, he exploited ethnic sentiment to divide communities and isolate opponents. Now, he is attempting to ignite the same divisive flame against a governor who has only focused on governance, inclusiveness and development.
Obaseki’s language in that video is not only reckless, it is incendiary. It hints at an attempt to stir resentment, inflame divisions and rally hostility toward a government that is working hard to rebuild the damage he left behind.
His recent globe-trotting under the guise of “meet and greet” is now clearer for what it is: an effort to secure foreign sympathy, funding and legitimacy for a domestic political battle he has already lost. When a former governor openly brags about mobilizing the diaspora and the global community against the current leadership of his own state, it raises valid questions about intent.
What exactly does he need international pressure for? Why is he desperately trying to create a narrative of crisis where none exists? And who are the people he hopes to recruit from abroad? Edo people have not forgotten that this same man once threatened to burn down Nigeria during an election.
They have not forgotten that his private “security structure” terrorized communities under the cloak of political loyalty. They understand the implications of a former governor seeking global support while trading in fear and hostility.
The uncomfortable truth is that Obaseki’s comments suggest a willingness to collaborate with external actors to undermine the peace of Edo State. A man who once equipped foot soldiers and political enforcers is now boasting about global mobilization.
The link is not far-fetched. His post-tenure travel pattern, sudden desperation and inflammatory rhetoric open the possibility that he is seeking funds or tacit support to revive the political machinery that once served him; a machinery that slipped into criminality after he left office. Edo cannot afford to overlook this. A man who once used threats to bend institutions is now using threats to intimidate a sitting governor.
And yet, despite Obaseki’s attempt to twist reality, Monday Okpebholo has not threatened him. He has not weaponized ethnicity. He has not responded with abuse. All he has done is to remind the public that the records of Obaseki’s misrule are there for anyone to examine.
The refusal to swear in duly-elected lawmakers. The manipulation of the Assembly to serve private interests. The unprecedented decision to withhold the swearing-in of judges recommended by the National Judicial Council. The demolition of the central hospital without providing a viable alternative for ordinary people. These actions were not just bad governance; they were the height of arrogance and indifference to the people he claimed to represent.
It is ironic that Obaseki now accuses others of threatening him when his own record is littered with acts that undermined the wellbeing of Edo people. His fear is not Governor Okpebholo. His fear is accountability. His fear is that the fog of propaganda can no longer cover the damage he inflicted on institutions, communities and public trust. And so he runs abroad to find new allies, hoping that distance will distort the truth.
His attacks on Governor Okpebholo’s loyalty to President Bola Tinubu are even more revealing. By insisting that Okpebholo should not deliver votes to the President, Obaseki exposes the bitterness that comes from losing political relevance. But governance is not about ego. Performance is what earns support. And Okpebholo’s quiet but consistent reforms across infrastructure, security, social welfare and public administration already place him miles ahead of the eight years of stagnation that Obaseki left behind. Edo people are not blind. They know who is working. They know who listens. They know who respects them. No amount of foreign posturing will change that.
Obaseki’s latest rant is a dangerous escalation from a man struggling to remain politically relevant. It is an open threat to peace and a signal that he is willing to drag Edo into conflict just to nurse his bruised pride. Edo people and the federal government must treat this with the seriousness it deserves. A former governor openly encouraging dissent abroad while tribalizing politics at home is a security concern. His record, his words and his behavior suggest that he is not acting alone.
The time has come for security agencies to take Obaseki’s latest comments and conduct seriously. His public threats, global mobilization and divisive rhetoric raise red flags that cannot be ignored. A thorough probe is needed to determine the intent behind his statements and the networks he is attempting to activate.
His known supporters, online loyalists and political enforcers must be properly profiled and monitored to ensure they do not undermine the peace Edo State is currently enjoying. Edo cannot afford to slip back into instability, and every institution responsible for protecting public safety must act decisively before words escalate into something more dangerous.
Fred Itua, the Chief Press Secretary to Governor Monday Okpebholo wrote from Benin City, Edo State
I have received calls, messages and other inquiries regarding the revocation of the CofO of Presco Plc by Governor Monday Okpebholo. The Secretary to State Government, Barr. Umar Musa Ikhilor, has robustly explained the issues.
Unfortunately, some folks, for obvious reasons, are still yearning for more answers. I’ll explain the facts and I hope this helps.
It has been established that the published Revocation Notice didn’t pass through the appropriate channels. Again, the actual number of hectares intended for excision from Presco Plc’s total landholding was grossly misrepresented in the published text.
For clarity, the Edo State Government has not revoked Presco Plc’s Statutory Right of Occupancy. What was under technical consideration was the excision of approximately 20 hectares—a clearly defined area—strictly limited to the portions of land containing strategic crude oil wells.
This excision became necessary because no individual or company can lawfully exercise proprietary rights over land where mineral resources are located, as such resources are vested exclusively in the Federal Government.
Section 44(3) of the Constitution of the Federal Republic of Nigeria (1999, as amended) provides that:
“Notwithstanding the foregoing provisions of this section, the entire property in and control of all minerals, mineral oils and natural gas in, under or upon any land in Nigeria shall vest in the Government of the Federation…”
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Section 1 of the Petroleum Industry Act, 2021 similarly states that:
“…the entire ownership and control of all petroleum in, under or upon any lands in Nigeria shall be vested in the State (Federal Government)…”
Section 28 of the Land Use Act (1978) empowers government to revoke rights of occupancy strictly for overriding public interest, which includes matters relating to mineral exploitation.
The Edo State Government advises the general public, stakeholders, and Presco Plc to disregard the notice in its entirety.
Meanwhile, Governor Monday Okpebholo has initiated a formal administrative review to strengthen internal controls to prevent future breaches.
The administration of Governor Monday Okpebholo reiterates its commitment to transparent land administration, orderly engagement with investors, and the protection of public interest, particularly in matters involving national strategic assets such as oil and gas assets.
So, my people, no cause for alarm.
Fred Itua is the Chief Press Secretary to Governor Monday Okpebholo of Edo State.
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