By Victoria Okpanachi
The issue of ponzi has always been a reoccurring scenario in our history. In 2016 Nigerians woke up to a money making scheme called Mavrodi Mundial Moneybox, popularly known as MMM. It came with a lot of hope. The scheme then promised to make people who were willing to join become very wealthy overnight. A lot of people wanted to achieve what most hardworking Nigerians could not get from several years of hard work. As much as hard work is a very reputable culture in Nigeria, a lot of people when faced with stiff challenges will take the easy way out. People began to canvas and get others under them, the majority got the whole of the family members enrolled, with the intention of sparking a lineage of generational millionaires. Alas what they got was generational heartbreak when MMM finally crashed. Some cashed out, while others who joined at a later date were served “premium tears” like we will say in Nigeria. Since then, similar schemes such as Loom, Ultimate Cycler, Twinkas, LSS NOW and MBA Forex Trading and Investment Limited.
The latest scheme with the name China Beijing Equity Exchange (CBEX) has followed the same pattern of initial payouts to lure in more people, then after a few months there will be an inevitable collapse. The recurring nature of Ponzi schemes in Nigeria underscores the need for increased financial literacy and regulatory enforcement. This is 2026, and believe you me, similar schemes will come out for unsuspecting victims. This is the reason for this write up. It is intended to create awareness so you can be a step ahead, when they come around with their evil tactics to scam you. While the platforms may change, the underlying deceit remains. It’s imperative to approach investment opportunities with skepticism, conduct thorough research, and consult financial experts before committing funds. Remember, if it sounds too good to be true, it probably is. The thought of a 30% monthly return had Nigerians lining up, only to face heartbreak when the scheme inevitably collapsed. Remember in 2025, history repeated itself with CBEX, a crypto-based platform promising 100% returns in just over a month.
Despite technological advancements, the core mechanics of these schemes remain unchanged, enticing returns, peer recruitment, and eventual collapse. CBEX presented itself as a Singapore-registered cryptocurrency exchange, boasting AI-driven trading strategies and offering returns that seemed too good to be true. Operating primarily through Telegram groups, it lured thousands with promises of doubling investments in 35 days. However, by April that year, the platform crashed, locking users out and erasing approximately ₦1.3 trillion in investments. Investigations revealed that CBEX was unregistered with Nigeria’s Securities and Exchange Commission (SEC), and its operations bore the hallmarks of a classic Ponzi scheme.
In spite repeated warnings from financial regulators and government agencies, Ponzi schemes continue to evolve, rebranding and leveraging social media to gain trust and spread rapidly. Many victims, however, ignored red flags and regulatory advice. Nigerians are hardworking people, and the value of becoming rich overnight has never been a part of our values. However, people coming out to show how wealthy they get from a scheme makes it believable and this is responsible for the growing number of people getting into ponzi irrespective of the impending doom. It is a fraudulent system that pays early investors using the money from new investors. It has no real product or sustainable income source. The scheme grows only as long as new people join in, but when the flow stops, it crashes, and most people lose everything.
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These scams wear many masks, but they all follow the same dangerous patterns. One of the biggest warning signs is the promise of unrealistic returns. When someone offers you 50% profit in a week or tells you, your money will double in 10 days, that’s not investment, that’s bait. No legitimate business can sustain such returns consistently.
Another red flag is the lack of a clear, explainable business model. If you ask, “How do you make money?” and the answer is vague or confusing, be suspicious. Real businesses are transparent. They tell you what they sell, who their clients are, and how they generate profit.
Ponzi schemes often rely on aggressive recruitment. If you’re told you’ll earn more by bringing in your friends and family, be careful. That’s not investing, that’s building a pyramid. When a system depends on signing up new people rather than selling a product or service, it’s a classic Ponzi model.
You’ll also find that many of these platforms are not registered or regulated by any known authority. They operate without licenses from the Corporate Affairs Commission (CAC), Securities and Exchange Commission (SEC), or Central Bank of Nigeria (CBN). Always check these agencies before trusting anyone with your money.
Watch out for schemes that use fake success stories and staged testimonials. They often highlight a few early earners who were paid just to attract others. Don’t fall for pictures of luxury cars or screenshots of credit alerts, those can be manipulated or bought.
According to experts, to protect oneself and others, people must start with financial education. Nigerians need to understand how real investments work. They should make financial literacy a part of school curricula, church programs, community meetings, and even social media conversations.
We also need to change our mindset about money. Wealth isn’t built overnight. When you see a suspicious platform, report it. You can contact the EFCC, SEC Nigeria, or the Nigerian Police Cybercrime Unit. Every report helps prevent someone else from falling victim.
Ponzi schemes are not opportunities. They are traps. Flashy branding, sweet words, and quick returns should never replace logic, caution, and due diligence. No matter how convincing a scheme appears, if it sounds too good to be true, run.
Every Nigerian deserves a chance at prosperity, but that dream must be built on truth and effort, not deception. No to Ponzi schemes. Yes to financial wisdom.
