Nigerians Count N316bn Losses as Ponzi Scams Surge

Nigeria’s capital market regulator, the Securities and Exchange Commission, has raised a fresh alarm over the growing investment scam crisis in the country, with citizens having lost more than ₦316 billion to various Ponzi schemes and illegal fund managers in recent years.

The Commission’s Head of FinTech and Innovation, AbdulRasheed Dan-Abu, made the revelation during a training session for financial journalists in Abuja. He also warned that “greed and ignorance” continue to fuel the spread of fake investment programmes across the nation.

Dan-Abu explained that Ponzi operators thrive on returns using money from new investors to pay old participants while they do not engage in any legitimate business. “These schemes are not really doing anything. They collect money, pay early investors, then vanish when no new funds come in,” he said.

The Costly Price of Quick Riches

But according to the SEC, Nigerians’ obsession with instant riches remains a major driver of the problem. “Everybody wants to get rich today,” Dan-Abu said. “Even educated people fall for these tricks. Education has not cured greed.”

He remembered the infamous MMM Nigeria scheme, promising 30 percent monthly returns before collapsing in 2016. Many victims, he said, were so desperate that they reinvested even after the platform shut down. “After MMM folded, fraudsters returned with promises of recovering lost funds — and people still paid,” he said in disbelief.

The Commission’s data looks grim. From smaller scams like Cow Lane, Now-Now Alert, and Box Value Trading to massive frauds like Galaxy Construction and MMM Nigeria, billions vanished. The single biggest case currently under investigation is over ₦174 billion, while the cumulative losses stand at between ₦315bn and ₦316bn.

Scams Go Digital

Most fraudsters now operate through social media, including WhatsApp groups and viral advertisements that appeal to unsuspecting investors. Dan-Abu warned, “No business in the world can give huge returns in a short time without risk-it is simply not possible.” He advised Nigerians that every investment must be checked at the SEC before paying a kobo. “If it is not registered, it is already illegal. Protect your hard-earned money,” he said.

He also called upon journalists to play their part in fighting misinformation. “The press can really help us. If you keep writing about this, you could save thousands of people,” he added.