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How Ponzi Schemes Are Destroying Lives In Nigeria

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Ponzi Scheme: A Threat To Lives In Nigeria
File photo to illustrate a distress man

 

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.

Opinion/Feature

Nigeria Can’t Achieve Electoral Reforms Without Effective Democracy Communication

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NASS shuts down main entrance gate for reconstruction work

By Audu Liberty Oseni, PhD

Conversations around Nigeria’s electoral reform focus mainly on electoral laws, institutions, technology, and the credibility of elections. While these are central and fundamental, a deeper dimension that must be at the centre of the conversation has emerged in my research.

My study, “Democracy Communication and Citizens’ Perceptions of Political Trust and Democratic Legitimacy in Nigeria,” examined how democracy communication shapes citizens’ perceptions of political trust and democratic legitimacy.

Relying on qualitative data collected through Focus Group Discussions and Key Informant Interviews across 12 Local Government Areas in Abuja and Lagos, the study showed that democracy communication plays a central role in how citizens understand and engage with democracy. Citizens engage with the core principles of democracy, including free, fair and credible elections, rule of law, separation of powers, participatory decision-making, accountability, as well as fair and equitable representation, through communication.

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The study further revealed that citizens who show a stronger preference for participatory democracy communication are those who have experienced dialogue-based engagement.

This is because participation, inclusion, collective decision-making and accountability are not external to communities. They are rooted in people’s socio-cultural systems of indigenous knowledge used for social interaction and collective decision-making.

Citizens showed an understanding of what strengthens and erodes trust in democratic institutions in all 12 Local Government Areas studied. Their dealing with democracy was conditional. They would be more willing to engage and support democracy and democratic institutions when accountability, participation and responsiveness are present, whereas they disengage when distrust rises and dominates.

These findings reveal central and fundamental issues. Citizens actively evaluate, negotiate and respond to how democracy is communicated and practiced; they are not mere passive recipients of democracy. Despite this, a significant mismatch between institutional communication and citizens’ preferences exists. The reliance of government and political institutions on top-down communication is a dominant practice.

A preference for communication that allows citizens to ask questions, deliberate, negotiate, contribute, and influence decisions was strongly expressed. Democratic communication is seen as more credible and legitimate, especially when facilitated through trusted local community structures.

This has profound implications for electoral reforms. Nigeria cannot achieve electoral reforms while communicating with citizens as though they are merely an audience. Electoral reforms are not only about changing laws or introducing technology. The citizens must understand the reforms, participate in the conversations, question them, have opportunities to influence implementation, and must be able to hold institutions accountable.

This is why this study argues that electoral reforms are largely ‘a communication process’. Electoral credibility and service delivery are not the only factors that determine citizens’ support for democracy. Communication processes that create opportunities for dialogue, negotiation, and meaningful participation in governance shape citizens’ support for democracy.

The understanding of democracy should not be based on its assessment as a system of institutions and procedures; it is also an ongoing communicative relationship between the state and her citizens.

Nigeria must reposition democracy communication from a peripheral activity to a central pillar of her democratic practice and electoral reform. Political actors, electoral institutions and policymakers must champion the institutionalization of participatory democracy. These communication processes enable citizens to engage, deliberate, negotiate and co-create solutions to governance challenges.

If we Nigerians want electoral reforms that citizens trust, understand and own, we must embrace communication. A means by which we stop communicating to citizens and start communicating with them. We cannot achieve electoral reforms without effective “Democracy Communication”.

Oseni, Director, Centre for Development Communication (CDC), sent this via email – [email protected]

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Opinion/Feature

Unlocking NPFL’s Market Value, Potential (1)

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By Andrew Ekejiuba
The Nigeria Premier Football League (NPFL) possesses all the ingredients required to become one of Africa’s most valuable domestic football competitions.

With a population exceeding 230 million people, an enormous football-loving fan base, fierce regional rivalries, an abundance of talented players, and a rapidly expanding digital audience, Nigeria has a foundation that many leagues across the continent can only aspire to.

Yet, despite these enormous advantages, the commercial value of the country’s elite league remains far below its true potential.

Unlocking this value requires a fundamental shift in how NPFL clubs are managed. Clubs must stop operating merely as football teams and begin functioning as professional sports businesses. Unfortunately, many NPFL clubs continue to run as extensions of government ministries rather than commercially driven organizations. This governance model has significantly hindered both the growth of the clubs and the development of the league itself.

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Every NPFL club should have a Board with competent professionals overseeing strategic decisions and policies. Equally important is the appointment of qualified Chief Executive Officers, Commercial Directors, Marketing Managers, Digital Media Teams, Fan Engagement Officers, and Business Development Executives.

All these are necessary because sustainable football success is built on strong institutions, not merely on performances on the pitch.

It has been revealed that most government-owned NPFL clubs rely almost entirely on state government funding despite the potential to generate incremental revenues annually. This dependency creates numerous challenges, including unstable financing, political interference, weak accountability, and little motivation to generate independent revenue. Such a structure inevitably limits innovation and commercial growth.

To become financially sustainable, clubs must progressively diversify their revenue streams through sponsorships, merchandising, hospitality services, membership programmes, ticket sales, academy transfers, digital subscriptions, media content, and other commercial initiatives. All these can be achieved through verifiable metrics and analytics that are attractive to various local and international partners. Government ownership, where it exists, should target direct intervention in key strategic areas and create a conducive environment that will facilitate the accelerated growth and development of the Clubs.

Another significant opportunity lies in building stronger club brands.

Although many NPFL clubs boast rich histories and passionate supporters, their brand identities remain underdeveloped. Every club should possess a clearly recognizable identity defined by its colours, logo, slogan, traditions, legends, and deep community roots.

Successful football clubs across the world sell identity before they sell football. Supporters do not merely buy tickets—they buy belongings. Consequently, every NPFL club should invest in a consistent visual identity, professionally managed websites, vibrant social media platforms, documentaries, podcasts, player profiles, and well-preserved historical archives. Football fans connect with stories just as much as they celebrate trophies.

Equally important is improving the matchday experience. Many NPFL venues still struggle with poor seating arrangements, inadequate parking facilities, poor sanitation, limited food and beverage options, weak security, and insufficient entertainment before and after matches. A football match should be an event that supporters eagerly anticipate, not simply ninety minutes of action. Creating enjoyable and memorable matchday experiences will strengthen emotional attachment between clubs and their supporters while increasing attendance and spending.

Digital media also presents one of the greatest opportunities for unlocking the league’s commercial value. Today’s football audience increasingly consumes content on mobile phones and digital platforms long before watching matches on television. Consequently, clubs must invest heavily in digital content creation.

Media departments should consistently produce engaging content, including training sessions, behind-the-scenes footage, player interviews, tactical analysis, academy updates, fan competitions, historical features, documentaries, and interactive social media campaigns. Around the world, digital engagement has become a significant source of commercial revenue through advertising, sponsorships, subscriptions, and fan monetization. The NPFL cannot afford to be left behind.
Another area requiring strategic attention is player development and transfers. Evidence from several emerging football leagues shows that player trading can become a major source of sustainable income when properly managed. Nigeria continues to produce exceptional football talent, yet too many players leave for relatively insignificant transfer fees.

NPFL clubs should strengthen their youth academies, offer longer-term contracts to promising players, improve scouting networks, negotiate favourable sell-on clauses, secure development compensation rights, and create attractive welfare packages to retain outstanding talent for longer periods. European clubs such as Red Bull Salzburg and Genk have built highly successful business models around player development and strategic transfers, an approach worthy of emulation.

In addition, club licensing regulations should enforce the requirement for every NPFL club to own and operate a functional youth academy that consistently feeds the first team. Such academies reduce recruitment costs, reinforce club identity, generate future transfer income, and strengthen community engagement. Beyond football, these academies should prioritize education, nutrition, sports science, psychology, and life-skills training to ensure the holistic development of young athletes.

Finally, clubs must begin to view their stadiums as commercial assets capable of generating revenue year-round, not merely on matchdays. Properly managed stadiums can host concerts, conferences, exhibitions, restaurants, museums, gyms, club shops, guided tours, and corporate events while also generating income through naming rights and other commercial partnerships.

In part two of this series, attention will shift to other critical drivers of football economics, including improved officiating standards, broadcasting rights, sponsorship development, data analytics, fan engagement strategies, and governance reforms.

Ultimately, the NPFL’s greatest untapped asset is not merely the quality of football played on the pitch. A vast domestic market, an intensely passionate football culture, a large diaspora community, and an endless pipeline of talented players provide a foundation that very few African leagues can match. If these assets are strategically harnessed, the NPFL can emerge as one of the continent’s most commercially successful and globally respected football leagues.

Ekejiuba of GTI, writes from Lagos Island

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Opinion/Feature

AKK: NNPC’s Continued Drive for Nigeria’s Development

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By Adeyemi Ilori
I have followed Nigeria’s gas story for the better part of two decades. I have sat through presentations that promised the world and delivered little. I have seen feasibility studies gather dust while flares continued to burn across the Niger Delta.

So, when I say that something feels different this time, I want you to understand the weight of that admission.

For years, the conventional wisdom among energy analysts was that NNPC was a black box – opaque, slow, and better at consuming budgets than delivering pipelines. But the evidence accumulating over the past eighteen months, particularly under the current Ojulari leadership at NNPC, suggests that the corporation is finally translating its gas into tangible infrastructure. The AKK pipeline, the OB3 interconnector, and the relaunched Gas Master Plan 2026 are not just slide-deck fantasies. They are, against considerable odds, becoming physical realities.

Let me be clear: this is not an uncritical endorsement. There are still legitimate questions about cost overruns, contracting transparency, and the long-term commercial viability of some projects. But the direction of travel is unmistakable. Nigeria is moving from a flare-heavy crude economy to a gas-industrialised powerhouse. And NNPC, for all its historical baggage, is the engine of that transition.

Any credible analysis of NNPC’s gas ambitions must start with the Nigeria LNG story. Not because it is new, but because it remains the single most successful energy partnership in sub-Saharan Africa. The experiment began in 1995 with a final investment decision. Four years later, the first cargo left Bonny Island for France. That is a turnaround time that would impress any international project manager.

As the majority shareholder with 49 per cent equity, NNPC’s role, among others, was to secure gas supply through its joint venture partners, most of whom were also shareholders. The structure was complex, but it worked. NLNG has since generated over $114bn in revenue for Nigeria and dramatically reduced gas flaring. Train 7, approved in 2019, will increase capacity by another third.

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But here is the critical observation that many inside Nigeria miss: NLNG succeeded partly because it was insulated from day-to-day political interference. It had a dedicated special-purpose vehicle, world-class partners (Shell, Total, Eni), and a clear export mandate. The question has always been whether NNPC could replicate that discipline for domestic gas infrastructure, where profit margins are thinner and political pressures are heavier. That question is now being answered.

Let me give credit where it is due. The Escravos-Lagos Pipeline System, commissioned in the same year as NLNG’s incorporation, does not get the attention it deserves. It moves gas from the Niger Delta to the industrial corridors of Lagos, Ogun and Oyo. Most of the power plants in that zone run on ELPS gas. If you have ever wondered why Lagos State’s economy dwarfs that of other Nigerian states, a reliable gas supply is a significant part of the answer.

But a critical observer would also note that ELPS is now decades old and operating below optimal capacity due to maintenance backlogs and third-party vandalism. The lesson is that building pipelines is only half the battle. Operating and protecting them is the long game. NNPC has made progress on security architecture – surveillance contracts, community engagement – but the threat landscape remains challenging. Rather than cower, NNPC’s scope has grown by leaps and bounds.

The Ajaokuta-Kaduna-Kano pipeline is the most ambitious inland gas project in Africa. Flagged off in 2020 under President Buhari, it spans 614 kilometres and costs roughly $2.8bn. When fully operational, it will transport 2.2 billion scf per day, support three new independent power plants in Abuja, Kaduna and Kano, and serve as the first leg of the Trans-Saharan Gas Pipeline toward Europe.

Now, for the critical part: I have watched enough infrastructure projects in emerging markets to know that ribbon-cutting ceremonies are cheap. What matters is crossing the River Niger, physically and metaphorically. True to type, in July 2025, the Ojulari administration celebrated exactly that engineering feat. The project team managed to lay pipe across one of Africa’s most challenging waterways. That is not a small feat.

Since then, momentum has increased. First gas is expected to reach Abuja in a matter of months. If that happens on schedule, it will be a watershed moment. But I would caution that the AKK has already faced delays and cost escalations. The original completion timeline was optimistic. The current management seems to have learned from that – they are now under-promising and over-delivering, which is refreshing.

The real test will be whether the industrial revival in Kano and Kaduna follows the pipeline. Textile mills and manufacturing hubs will not spring back to life automatically. They need complementary policies – tariff reform, export incentives, and reliable electricity distribution. NNPC can bring gas to the gate. It cannot force factory owners to turn on their machines. Yet, NNPC seems undeterred.

If there is a case study in Nigerian project perseverance, it will be the Obiafu-Obrikom-Oben (OB3) pipeline. Construction began in 2013. It was not meant to take this long to complete. I have written reports predicting its completion every two years since 2016. I was wrong every time, but the horizon is promising now.

The terrain was unforgiving. Swamps, rivers, community disputes, and funding gaps.

But NNPC, under the current leadership, finally deployed specialised micro-tunnelling equipment to breach the last major obstacle. As of February 2026, the OB3 is flowing approximately 300 million scf per day. That is real gas, moving from the stranded Eastern fields to the industrial West.

I want to highlight something that warms an analyst’s heart: the project is being handled by a local contractor, Oilserv. That is a testament to deepening local content. But it also raises a legitimate question about oversight. Local contractors bring lower costs and faster mobilisation, but they also require rigorous quality assurance. So far, Oilserv appears to have delivered. I would like to see independent audits published – transparency breeds confidence. And if the thoughtfulness in aggregating gas supply and delivery is any indication, the omens are very encouraging.

The crown jewel, in my view, is the NNPC Gas Master Plan 2026, relaunched with additional partners under the Ojulari management. That is not another glossy brochure; it is a coherent framework connecting AKK, OB3, ELPS, and future projects into a single national grid. Think of it as the operating system for Nigeria’s gas economy.

Previous master plans failed because they were aspirational but not sequenced. This one prioritises: it focuses on power generation first (the largest demand centre), then industrial feedstock (fertiliser, methanol, petrochemicals), then compressed natural gas for transportation and liquefied petroleum gas for cooking. That is logical.

But here is my main reservation: the master plan relies heavily on continued international partnership and financing. The Trans-Saharan Gas Pipeline to Europe is a multi-billion-dollar project that requires alignment with Algeria and Niger, both of whom have their own priorities. And European gas demand, post-2022, is less predictable than it once was, although the recent Middle East crisis appears to herald a silver lining for Africa-leaning investments. Despite that, Nigeria should not bet the house on exports only. Domestic industrialisation is the safer, more transformative bet.

So where does that leave an analyst like yours truly? I am overwhelmingly supportive of the direction, but I am not naive about the distance still to travel.

The positives: AKK is crossing rivers. OB3 is flowing. The Master Plan is coherent. NLNG’s success proves the model. ELPS shows what is possible. Ojulari’s first year has delivered more on-the-ground progress than recent years. Gas flaring is declining. Local content is deepening.

The critiques: Costs need to be more transparent. Project timelines have historically been fiction. Security of pipelines is an ongoing vulnerability. And gas alone cannot fix Nigeria’s broken electricity distribution network – that requires state-level reforms and private sector participation that lie outside NNPC’s mandate.

Let me end where I began. I have watched Nigeria’s energy sector for a long time. I have seen grand plans evaporate. The current moment feels different. Not because the challenges have disappeared: they haven’t. But because the leadership is finally treating gas infrastructure as a war, not a workshop. Pipelines are being laid. Rivers are being crossed. Molecules are moving.

AKK is coming. And for about the first time in years, I believe it.

Ilori is an energy analyst

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