By Ajibola Olarinoye
Nigeria is a leading target of the Ponzi schemes whereby millions of innocent investors have lost their life savings in a series of financial fraud and unfulfilled promises.
Through web platforms, such fraudulent activities keep on taking advantage of the needy to make returns fast especially in a nation that is going through serious economic issues.
In this case, we discuss ten significant Ponzi schemes that have shaken many people in the country leaving behind them a path of financial devastation.
In 2016, a Russian company called the infamous Mavrodi Mundial Moneybox (MMM) introduced itself to the financial market with a promise of a 30 per cent monthly yield. It was based on an international Ponzi scheme and as a result, it drew more than three million Nigerians who offered assistance hoping to get assistance in return.
The scheme failed in December 2016, halting accounts, and costing the losses at an estimated over N18 billion.
Soon after the collapse of MMM, Ultimate Cycler was launched in Nigeria, attracting thousands of people with a promised 400 percent ROI on a N12,500 entry fee in a chain-like scheme.
The site however suddenly closed down and there was no avenue left to the user.
It was soon followed in 2017 by Twinkas, which was offering a 200 percent sizable return. This program eventually collapsed since the number of new sign ups reduced and a lot of people were left without any money and disappointed.
D9 Club would follow suit and would similarly declare their profits through international sports betting the same year.
Having its operations in several countries, its victims in Nigeria were left to count their losses after the scheme failed and estimates showed that Nigerians had lost more than N10 billion in this scam venture.
In 2020 MBA Forex Trading and Capital Investment Limited attracted attention due to its promise of professional forex trading returns.
The platform had garnered the trust of thousands of Nigerian investors and the investments grew to over N171 billion. The platform however ended up closing down without paying out.
The CEO, Maxwell Odum, was declared a wanted person by the Economic and Financial Crimes Commission (EFCC), but no further news was given on the case.
In 2021, the Famzhi Interbiz Limited came into the scene offering to be a cooperative and promising returns of as much as 30 percent once a month.
The scheme had heavy investments till it was determined by the Securities and Exchange Commission (SEC) that its operations were illegal and investors lost approximately N30 billion.
The Chinmark Group of companies that boasted of investing in hospitality, transportation and other areas wound up in 2022. The company was heavily promoted by social media influencers without making payments which resulted in significant losses to the investors.
Unfulfilled promises exposed CEO Mark Chinendu to a lot of publicity and scrutiny.
In 2022, Ovaioza Farm Produce Storage Business went out of business as well. The company promoted itself as a farming investment platform, saying that it would give returns up to 70 percent.
The apparent legitimacy of the agribusiness attracted many people and only to realize it was another Ponzi scheme.
It cost an estimated N3 billion in losses and its founder was arrested by the Federal Competition and Consumer Protection Commission (FCCPC).
Brisk Capital is a tech-based investment company that came into the scene in 2021 and enticed thousands of Nigerians, especially the youth, with monthly returns of 30 percent.
Its founder, Dominic Ngene, used the social media to build some credibility but the platform failed in a few months, leaving investors in limbo and the project is estimated to have lost more than N2 billion.
CBEX (Crypto Bridge Exchange) was the most recent failure that happened in April 2025.
CBEX positioned itself as the futuristic trading platform in cryptocurrency that used artificial intelligence to offer amazing returns. It was appealing to investors who were promised of doubling up their wealth within a couple of years.
Nevertheless, shortly users began to have problems with withdrawing their money and web domains of the platform were removed without any explanation. Losses of between N500,000 and more than N2 million every are now being reported by many victims.
The continued increase and collapse of Ponzi schemes in Nigeria can be attributed to a number of factors such as economic hardship, lack of financial literacy, and the lure of high returns.
The Securities and Exchange Commission (SEC) of Nigeria has over the years maintained a strong position against Ponzi schemes and other deceitful investment schemes that have defrauded millions of the Nigerian people.
The Commission has always cautioned the populace to avoid investments that promise unrealistic earnings especially those which guarantee certain high returns in a short span of time.
The SEC says that these forums are not registered under its regulatory framework and often are operating outside of the legal capital market system.
Considering the surge in fraudulent financial operations, the SEC has published several public warnings of blacklisted and unauthorized firms.
