JUST IN: Ponzi Schemes: 6 Biggest frauds that scammed Nigerians

When a stranger sends you a message on WhatsApp and says you can double your money in a week, trust your gut and walk away. Over the last decade, Nigeria has sadly become a breeding ground for Ponzi schemes, sucking in millions of people with promises of outrageous returns and zero risk.From glamorous social media campaigns to endorsements by ignorant influencers and even religious leaders, these scams have infiltrated nearly every layer of our society.

Behind these glittering promises lies a trail of tears with life savings wiped out, relationships ruined, homes sold, and in some cases, victims driven to depression and even suicide. Ponzi schemes are not just a financial threat, they are a national plague. Despite several incessant warnings, they keep evolving, sometimes dressed as agricultural investments, crypto trading platforms, or cooperative societies.

Here are seven notorious Ponzi schemes that have wrecked the finances of thousands of Nigerians, when they happened, and what the government is doing to stop the bleeding.

1. MMM Nigeria -2016

This Ponzi scheme was the one that opened the floodgates. MMM Nigeria, run by convicted Russian fraudster Sergei Mavrodi, promised 30% monthly returns for “helping” others. It collapsed just before Christmas in 2016, leaving millions stranded and desperate. Affected victims were over 3 million Nigerians with a loss of over 18 billion naira. Even today, its impact lingers in every new scam that sounds just a little too familiar.

2. Galaxy Transportation and Construction Services -2019

This was a supposed logistics and haulage firm. Came to us in 2019 and marketed itself aggressively in Lagos and the South-East. It promised to double investments in six months. Later on that year, it crashed, and over 20,000 frantic investors were left clutching worthless receipts with a total loss of over 7 billion naira.

3. MBA Forex & Capital Investment Ltd – 2020

This Ponzi scheme came to Nigerians, masquerading as a legitimate forex trading firm. MBA Forex swayed over 10,000 people, especially professionals and retirees, with 15% monthly returns and a huge loss of over 171 billion naira. Its CEO, Maxwell Odum, became a poster boy for luxury and “smart investing” before vanishing. The EFCC has since declared him wanted, and court proceedings are still ongoing.

4. Baraza Multipurpose Cooperative – 2021 

Bayelsa-based Baraza lured over 30,000 investors with weekly returns under the cover of a cooperative society, but by 2021, it became clear it was a scam. Pastor George, the founder, disappeared with over 40 billion naira, and thousands of families, many in rural communities, were left in ruins.

5. Chinmark Group – 2022

With polished branding, massive influencer support and a loss of over 10 billion naira, Chinmark built a façade of trust. It promised up to 30% annual returns on investments in hospitality and logistics. The crash in 2022 left over 4500 people, including students, pastors, and civil servants, stranded. Its founder, Mark Chinedu, denied wrongdoing, but no one got their money back.

6. CBEX Global/CBBE – 2024

This crypto-style Ponzi scheme that crept upon Nigerians is the most recent to implode, and unfortunately, over 5000 people fell for it. CBEX Global, also known as CBBE, promised returns as high as 35% monthly. By the year 2025, the platform had gone silent, raking in 3 billion naira from victims, leaving investors locked out of their accounts. To date, many are still struggling to trace the operators.

Why Ponzi Schemes thrive and what the government is doing

Ponzi schemes flourish in hard economic times. When inflation bites hard, the naira falls, and jobs are scarce, many Nigerians turn to high-risk schemes out of desperation, looking for a shortcut to make money and acquire wealth. Sadly, scammers know this and exploit it.

Unfortunately, Nigeria’s regulatory system has often been perceived as lax, with authorities reacting too late to stop the damage caused by Ponzi schemes. Though agencies like the Securities and Exchange Commission (SEC) and the Economic and Financial Crimes Commission (EFCC) have made strides but this doesn’t take away the fact that enforcement is often slow.

By the time most Ponzi schemes are detected, many Nigerians have already been financially devastated. Additionally, the rise of digital platforms, including cryptocurrency and forex trading platforms, has made it easier for fraudulent schemes to flourish. Despite these challenges, the government has been making efforts to strengthen the financial regulatory framework. The Central Bank of Nigeria (CBN)and the  SEC have ramped up monitoring, and there have been increased investigations into unregistered investment platforms. However, Ponzi schemes continue to evolve faster than the government’s ability to track them.

How to Spot a Ponzi Scheme

Here’s how to tell if an “investment opportunity” is likely a scam:

Unrealistic returns: Anything promising more than 10–15% monthly is almost always a red flag.

No clear business model: If they can’t clearly explain how money is made, beware.

Aggressive referrals: You’re paid more for bringing others than for actual returns.

No SEC registration: Always check the SEC website to verify legitimacy.

No risk disclosure: Every real investment carries some risk. If they say “zero risk,” run.

Ponzi schemes prey on the hope of financial breakthrough, the hope of a better life but more often than not, they end in outright disaster. As government agencies continue to tighten regulations and raise awareness, Nigerians must also become more vigilant, less desperate and most importantly financially literate. If it looks too good to be true, it almost always is.