Courtesy of Quartz Africa

http://qz.com/839855/nigerians-are-falling-for-mmm-a-russian-ponzi-scheme/



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Millions of Nigerians are falling for a 27-year old Russian Ponzi scheme

Yomi Kazeem November 18, 2016 Quartz Africa


[img]https://qzprod.files./2016/11/a-signboard-showing-naira-notes.jpg?quality=80&strip=all&w=940[/img]


Paper chase. (Reuters/Akintunde Akinleye)

Nigeria’s economic downturn is proving fertile ground for a decades-old Russian Ponzi scheme to thrive.
Fallen on difficult times amid the country’s first recession in decades, millions of Nigerians have turned to Mavrodi Mondial Moneybox (MMM), a Ponzi scheme with roots in Russia, which promises unreasonably high returns on investments. Originally set up in the late 1980s by Sergei Mavrodi, a Russian ex-convict, the scheme has become popular in Nigeria where it has operated for a year.

According to the Nigerian website, MMM is described as a “mutual aid fund where ordinary people help each other.” Essentially, registered participants pledge and donate money to help other participants who request it and expect them to return the favor at a later date. As a catch, the scheme promises 30% monthly returns for participants who donate. Put another way, a participant who donates money is eligible to request for the amount donated plus 30% interest after a month. That request is then fulfilled by another participant.

An MMM participant who donates money is eligible to request for the amount donated plus 30% interest after a month.

Lagos-based economist, Tunji Andrews, likens it to a game of musical chairs. “Mr. A lends help to Mr. B, hoping that Mr. C pays him his own help before it crashes,” Andrews tell Quartz. “Now, knowing that it eventually will, every single payout, is paid for by those who get caught in, when the music stops.”
It seems a fairly obvious ruse. The website even states a warning: “There are no guarantees and promises! Neither explicit nor implicit,” it reads. “And in general, you can lose all your money.” But that hasn’t stopped the 2.4 million Nigerians who are registered from participating.
A recipe for disaster

For much of the past year, Nigeria has been stuck in a rot. Its economy, once regarded as one of the world’s fastest growing, is mired in a recession that shows no signs of abating. IMF forecasts the economy to contract by -1.7% this year. Inflation has also hit an 11-year high with prices of goods inching up every month. As a result, times are incredibly difficult for many Nigerians. With investors pulling out and businesses shutting up shop, unemployment is also an urgent problem.

A recent recruitment drive by a government agency helps put Nigeria’s unemployment problem in context. Advertising for only 500 positions, Nigeria’s federal tax agency received 700,000 applications—2,000 of which were by graduates with first class honors degrees. Similarly, in February, the Nigerian Police Force received almost a million applications for 10,000 listed positions.

“The government can say what they like. If they can’t assist us, they should leave us alone” —MMM participant.

With millions of unemployed people seeking means of livelihood, a scheme which promises high returns has appeared to be a beacon of hope. The government admits this much. Saheed Fijabi, a federal lawmaker, says MMM is leveraging “the high level of unemployment and poverty to deceive unwary Nigerians.” The Central Bank of Nigeria (CBN) has also warned Nigerians to be careful about committing money to “fraudsters” promising high returns at a time when “the economy has suffered some decline.” But such warnings have irked MMM participants who accuse authorities of having ulterior motives.


Uncle Steve[PMP] @StevetweetsA
MMM adverts displayed inside a banking hall in Nigeria
1:48 PM - 15 Nov 2016
129 129 Retweets 25 25 likes
Ogadi Ngozi, a highly ranked MMM participant based in Delta state, in southern Nigeria, says the authorities only disapprove of MMM because the scheme is costing local banks some customers. “Nobody goes to the banks for loans anymore,” Ogazi tells Quartz. “Why go there and collect loans at outrageous interest rates when you can help one or two persons in MMM and be smiling with a 30% reward?” Ogazi also insists participants are aware of “participating at their own risk.”
Given the tough economic woes, MMM participants staunchly defend their involvement in the scheme citing the government’s inability so far to make life better for Nigerians. And that reality is making the scheme even more popular as, at the time of writing, rankings by Alexa, a web traffic data and analytics company, show MMM’s websites are the fifth and 14th most visited in Nigeria, only behind Google’s global and Nigerian sites, YouTube, Yahoo but ahead of Facebook. Julie, a Lagos-based participant, plans to continue to risk her money despite the government’s warning. “The government can say what they like. If they can’t assist us, they should leave us alone.”

Earnestly awaiting the doomsday. But when will that be? Nobody knows. In the meantime, the risk continues and more people are becoming advocates.

Funny thing is, many Know it is a sham, but they strive to get richer. Many see this as a risk worth taking. The hardship in Nigeria has given many a reason, but believe you me, even if MMM had come 5 years ago, it would recieve equal patronage.

One fact is sure. One day, a financial vacuum will be created. Almost all the participants in the scheme are aware of this. But each one is silently praying it doesn't happen before they receive their reward.

My candid advice is: since it is almost impossible to discourage you, please invest what you can afford to lose. Don't greedily dump your entire life savings into the scheme.

A chicken was bought in Febuary to be reared for Christmas. The owner kept feeding the chicken and it got fatter and fatter.

The chicken had no idea what fate had in store; it thought it was enjoying and there's nothing to worry about.

Months went by and each day that passed was additional confirmation to the chicken that all is well n life is good.....until the morning of Dec. 25th.

Anybody that has time to read this thing op pasted. Is a disgrace

The amazing thing have found out on this forum is that those who are critisizing MMM are those who are not into it and knows nothing about how the works... Just look at the post that the @ops posted above if you are smart enough you will know that its a sponsored post and this clearly shows that the op doea not not understand a thing about the operation of MMM..

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