The recurring nightmare of Ponzi schemes in Nigeria continues to plague the nation, leaving a trail of financial devastation in its wake. From the notorious MMM saga of 2016 to the recent collapses of CBEX and other crypto-based platforms in 2025, the pattern remains tragically consistent: the promise of exorbitant returns with minimal risk draws in unsuspecting individuals, followed by an initial period of seemingly effortless profits, culminating in a catastrophic crash that wipes out savings and leaves countless victims in financial ruin. The allure of quick riches, coupled with sophisticated marketing tactics and the exploitation of emerging technologies, continues to fuel this cycle of financial exploitation.
MMM, arguably the most infamous Ponzi scheme in Nigeria’s history, set the stage for this pattern. Promising an unbelievable 30% return on investment in just 30 days, it rapidly gained traction, ensnaring millions of Nigerians in its web. The scheme’s collapse in December 2016 served as a stark warning, yet it did little to deter the emergence of subsequent schemes. Ultimate Cycler, Get Help Worldwide, Twinkas, and a host of other platforms quickly emerged, employing similar tactics of peer-to-peer donations and cyclical systems to attract new investors. These schemes, however, quickly followed the same trajectory as their predecessor, collapsing within months as the unsustainable model inevitably ran out of new recruits.
Despite repeated warnings from financial regulators and government agencies, the ingenuity of fraudsters continues to evolve. Copycat schemes emerged, attempting to capitalize on the desperation of those who had lost money in previous schemes, promising improved structures and recovery plans. These schemes, including NNN Nigeria, MMM Cooperation, GCCH, and RevoMoney, simply rebranded the failed MMM model, ultimately leading to the same devastating outcomes. In the years that followed, Ponzi schemes disguised themselves as cryptocurrency investment opportunities, charity donation networks, and multi-level marketing platforms, leveraging complex jargon and buzzwords like “blockchain” to lure unsuspecting investors. Bitclub Advantage, Million Money, and Helping Hands International are prime examples of this evolution.
The advent of social media provided fertile ground for the rapid proliferation of these schemes. Platforms like WhatsApp and Facebook became powerful tools for recruitment, enabling schemes like Loom and Crowd1 to gain traction quickly. These platforms relied heavily on the promise of exponential returns for recruiting new members, a classic hallmark of pyramid schemes. As recruitment inevitably slowed, the schemes collapsed, leaving those at the bottom of the pyramid with nothing to show for their investment. The rise of fake digital currencies and dubious cooperative societies further complicated the landscape. InksNation, with its “Pinkoin” currency, promised to eradicate poverty, while Lion’s Share and Baraza Multipurpose Cooperative masked their Ponzi structures behind the veneer of legitimate businesses. All were eventually exposed or shut down by regulators.
The period between 2020 and 2021 saw a surge in schemes that employed influencer marketing and betting themes to attract investors. Racksterli, Eagle Cooperative, and 86FB capitalized on these trends, with 86FB achieving widespread popularity before its inevitable collapse, leaving billions of Naira in losses. The more recent schemes, including FINAFRICA, Royal Q, and Ovaioza, further diversified their deceptive tactics, posing as forex trading services, crypto trading bots, and agro-storage companies respectively. These sophisticated disguises, coupled with aggressive online campaigns and fake testimonials, enabled them to attract significant investment before ultimately failing to sustain their promised payouts.
The most recent wave of Ponzi schemes, represented by platforms like CALA Finance, 6Dollars Investment, Sidra Investment, WealthBuddy, Compoundly, BitFinance Global, and CBEX, demonstrates the continued adaptation and resilience of these fraudulent operations. These schemes have embraced the language of decentralized finance (DeFi) and online finance, leveraging the complexity and novelty of these spaces to deceive investors. The case of CBEX, advertised as an AI-powered cryptocurrency trading platform promising 100% returns every month, exemplifies the audacity and sophistication of these modern-day scams. The swift collapse of CBEX, with investors reporting vanished funds and storming the company’s offices in Lagos, underscores the urgent need for continued vigilance and investor education in the face of evolving financial fraud. The tragic cycle of Ponzi schemes in Nigeria highlights the need for stronger regulatory measures, increased financial literacy, and a collective responsibility to resist the allure of quick riches that ultimately leads to widespread financial ruin.
