LIVE UPDATES
At a modest internet café tucked away in Egbeda, a bustling Lagos suburb, 29-year-old Chidi Okonkwo logs into a WhatsApp group named We Rise by Lifting Others. It’s not a self-help forum or motivational community—it’s the latest in a string of Ponzi schemes that promise double or triple returns within weeks. Chidi isn’t alone. Every day, millions of Nigerians pour their hard-earned—and often borrowed—money into similar platforms, chasing the hope of quick financial relief. Despite repeated warnings from financial regulators and countless stories of loss, the allure of Ponzi schemes continues to grow in Nigeria. But why?
A Nation in Financial Distress
Nigeria, Africa’s most populous country, is rich in oil, culture, and potential. Yet for decades, economic instability, corruption, rising inflation, and unemployment have left large swaths of the population struggling to make ends meet. According to Nigeria’s National Bureau of Statistics, over 40% of Nigerians live below the poverty line. Youth unemployment hovers around 53%.
“People are not investing in Ponzi schemes because they are greedy,” says Dr. Bimbo Yusuf, an economist. “They are investing because they are desperate.”
With limited access to credit, poor banking penetration in rural areas, and a social safety net that is either weak or nonexistent, millions are left to fend for themselves in a system that seems rigged against them.
Digital Deception and the New Age of Fraud
Modern Ponzi schemes in Nigeria are no longer modeled after the likes of MMM alone. They now come disguised as fintech apps, crypto investment platforms, or social entrepreneurship networks. They use Instagram influencers, Facebook ads, and flashy websites to market “investment opportunities” that often appear legitimate.
“I joined because my friend showed me her dashboard and the money she withdrew,” says a single mother in Lagos. “I just wanted to double my capital. I needed it for my children’s school fees.”
The Hope That Dies Last
Ponzi schemes are built on a simple model: early investors are paid returns from the capital of new investors, not from actual profit. Eventually, the chain collapses when new investments dry up. By then, the promoters have vanished, and the victims are left to count their losses—or start a new cycle.
Many of those who fall prey are not uneducated or naive. They are often civil servants, small business owners, and even tech-savvy youths. The underlying factor? A volatile economy and a society where hard work alone is no longer a guarantee of survival.
“People have lost faith in traditional systems,” says Segun Adebayo, a financial analyst based in Abuja. “Banks offer almost nothing in savings interest, and jobs don’t pay living wages. Ponzi schemes feel like a lottery ticket—a way out of economic quicksand.”
A Government Struggling to Catch Up
The Nigerian government, through agencies like the Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC), has cracked down on some fraudulent platforms. But enforcement is often too little, too late. New schemes pop up as quickly as old ones disappear.
Critics argue that until the systemic issues—youth unemployment, poor financial literacy, and economic inequality—are addressed, the government is only treating symptoms, not the disease.
The Human Cost
Behind every failed scheme is a story of dashed dreams. Marriages break down. Students drop out of school. Homes are lost. Some victims, unable to bear the shame or financial ruin, have taken their lives.
“I lost my brother to a Ponzi scheme,” says Comfort Ijeoma, a trader at Iyana Iba Daily market. “He borrowed money to invest in a platform that crashed in three weeks. He couldn’t face our parents. He took his own life.”
What Needs to Change
Experts recommend a multi-pronged approach:
Widespread financial education: Teaching people how to recognize scams and make informed financial decisions.
Improved access to credit: Creating legitimate paths to wealth-building through government-backed loans and microfinance.
Job creation and economic reforms: Tackling the root cause of desperation by investing in industries that absorb the unemployed.
Until then, millions will continue to risk it all on get-rich-quick schemes—chasing a future that always seems just one payout away.
