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YESGRANT: Is This The New Ponzi Scheme In Nigeria? - Politics - Nairaland

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YESGRANT: Is This The New Ponzi Scheme In Nigeria? by Cindino20(m): 1:55pm On Mar 27, 2016
Just this weekend I came across a topic on vanguard news paper titled ‘NYPF to Launch 500Million Naira grant for entrepreneurs, students.’ [1]
I was delighted as it seems to be the only good news I have read about the motherland in 2016.

The aim of the YESgrant is to ‘enable young entrepreneurs with creative ideas in Agriculture, ICT and creative industry start or expand their business concepts and provide over 500 Nigerian students schooling locally or abroad with tuition to pursue their academic dreams and aspiration in the areas of research and technological/scientific innovation.’[1] ‘The YESGrant will provide business training for up to 600 aspiring young entrepreneurs spread across all geo-political zones in Nigeria and will encourage expansion, specialization and spin-offs of existing businesses, which is to enable young entrepreneurs access a wide business professional network and improve their visibility, while entrepreneurs will receive up to 2million Naira annually as grant.’[2]


The aim of the program piqued my interest as it sounded too good to be true, no thanks to dubious schemes by previous companies. Nowadays an average Nigerian has the ability to see through lies, so I probed further and decided to check the requirements and methods of application.
‘To qualify for YESGrant, prospective recipients must be between the ages of 18- 40, be registered members of the Nigerian Young Professionals Forum (NYPF), and be registered with the Corporate Affairs Commission (CAC) using their registered companies and have an account with Heritage Bank prior to disbursement of fund. Student’s award recipients must in addition provide their matriculation number and academic progression report.’ [1]

So I zoomed to Nigerian Young Professionals Forum (NYPF) website http://www.nypforum.org/ and checked out the requirements of becoming a member. Permit me to quote the website as the last thing I need is a lawsuit for defamation of character.

According to the website, members are mandated to pay a certain amount of money per annum as membership fee. So students are expected to pay 10,000naira, 20,000naira for graduates and 25,000 naira for others. [3] This was when it dawned on me that this could be Ponzi Scheme (my opinion) and then the million-dollar question: why would a scheme whose aim is to encourage young people with funds to start a business or offer scholarship to students ask them to pay as high an annual fee of 10,000 naira in the present day Nigeria?

According to Wikipedia, a Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. [4]

The YesGrant to me seems like a modified Ponzi scheme and the reasons are not farfetched. Let’s do the maths, assuming 15,000 student registers with them as members and 20,000 graduates and 10,000 others. [4] These numbers will not be hard to come by taking into consideration the high unemployment rate in Nigeria which some experts estimate at 80%. And also taking into consideration that the organisers are also targeting Nigerians in Diaspora

For students 15,000*10,000 naira = 150,000,000 naira
For Graduates 20,000*20,000 naira = 400,000,000 naira
Others 10,000*25,000 naira = 250,000,000 naira
Total 800,000,000 naira

Heritage Bank is not sticking out their brand for nothing…According to the terms and conditions members are expected to have an account with Heritage Bank and if 45,000 persons signs up for this program that is 45 million naira or 90 million naira for Heritage bank depending on the minimum account balance requirement for opening an account in Heritage. In addition, they also have 45,000 new customers and more than half of them will continue to use their service after the program. Just a few questions for the organisers.

What is the timeline for this program?
Application timeline?
Award Timeline?
Is the selection committee independent?
Objective basis for selection?
What external body or regulatory body is overseeing this scheme.

I searched the websites and could not find convincing answers to the above questions

The questions that comes to mind now is if the scheme is sustainable? Our people say history has a way of repeating itself. The 2014 Nigeria Immigration Recruitment Tragedy is still fresh in our minds (may the souls of the faithful departed rest in peace) where an estimated 6.5 million persons paid 1000naria each only for some of the applicants to lose their lives in the process. [5] If this turns out to be a modified Ponzi scheme the next step as it was in the case of the immigration recruitment in 2014. Your guess is as good as mine.

The promoter vanishes, taking all the remaining investment money or Since the scheme requires a continual stream of investments to fund higher returns, once investment slows down, the scheme collapses as the promoter starts having problems paying the promised returns (the higher the returns, the greater the risk of the Ponzi scheme collapsing). Such liquidity crises often trigger panics, as more people start asking for their money.

While the idea behind the scheme is commendable I have my own reservations and I will allow the readers to answer the question below:

YESGRANT: is this the new Ponzi scheme in Nigeria?

References
[1] http://www.vanguardngr.com/2016/03/nypf-launch-n-5bn-grant-entrepreneurs-students/
[2] http://www.premiumtimesng.com/news/top-news/200841-nigeria-1000-young-nigerians-receive-n500million-grant-start-ups.html
[3] http://www.nypforum.org/
[4] https://en.wikipedia.org/wiki/Ponzi_scheme
[5] https://en.wikipedia.org/wiki/2014_Nigeria_Immigration_Recruitment_Tragedy

Written by Cindino on the 27.03.2016 all rights reserved Copyright © 2016

3 Likes 1 Share

Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by DaBullIT(m): 2:43pm On Mar 27, 2016
Annual fees means end of the year payment in return on the loans or encouragement granted to anyone of the categories


You get the encouragement first and pay at the end of the year


But then this is Nigeria I may be wrong
Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by Cindino20(m): 2:48pm On Mar 27, 2016
DaBullIT:
Annual fees means end of the year payment in return on the loans or encouragement granted to anyone of the categories


You get the encouragement first and pay at the end of the year


But then this is Nigeria I may be wrong

Nope..to apply for the YesGrants you ve to be a member of Nypf and to be a member you need to pay the annual membership fee...
Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by Nafizzey(m): 3:58pm On Mar 27, 2016
Nice analysis Brother! Only Apcheatz Zombies will not see the fact in this analysis. Apcheats Change is gradually turning to Chains to Nigerians. #God is watching.

3 Likes 4 Shares

Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by SleekAboki: 4:05pm On Mar 27, 2016
Gbawe PassingShot demdem egift ngeneukwenu omenka have you guys applied?
Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by Lordtrillion(m): 4:08pm On Mar 27, 2016
Hmmm shocked shocked
Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by seunny4lif(m): 4:11pm On Mar 27, 2016
grin grin
I will apply grin
I get ideal on nice lubricating business
Weed supplying
Asahwo grin
Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by afroniger: 4:20pm On Mar 27, 2016
OP, try and see the bigger picture here. How much does it really cost to open a bank account and have your business registered?Personally, I won't mind parting with N20k for an opportunity to win this grant in question, and on top of that, the Youth forum opens you up to a vast network of contacts that can potentially translate into business opportunities for a smart, creative, visionary and ambitious entrepreneur. #TheBiggerPicture.

1 Like

Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by Decibel: 4:51pm On Mar 27, 2016
It's truly a ponzi scheme as a well as a conduit pipe for the political class who have long been maasturbating at the corridors of power to loot conspicuously without blinking an eyelid.

3 Likes

Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by Eddygourdo(m): 5:20pm On Mar 27, 2016
It could be a ponzi scheme, but truly no investment is risk free. This is a quick method of generating fund for entrepreneurs, if effective the same money can be turned around in a period for other winners. The model of implementation should be made open and transparent. This will help people understand the inner workings of the initiative. 10k, 20k or 25k no be beans. One must be carried along. Guess for an roi of a year, the business must be highly productive with little start up time
Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by Sctests: 5:44pm On Mar 27, 2016
It 'spure ponzi scheme
25000* 1000 (minimum candidates)= N25,000,000.
A clear case of robbing poor peter to pay rich mohammed.
Who are the clowns deceiving?

1 Like

Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by shellcom: 7:55am On Mar 28, 2016
This thread should be taken to front page.

Ponzi scheme is a corporate scam grin
Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by Agbaletu: 8:29am On Mar 28, 2016
I just don't understand this APC led government. This is a Ponzi Scheme there is no other name for it.
Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by SycophanticGoat: 6:36am On Apr 02, 2016
Lalasticlala, OAM4J, it's morning already, please wake up and don't let the snakes (scammers) bite.. Inform the public before they make the wrong decisions oh.. cool

1 Like

Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by godoluwa(m): 7:16am On Apr 02, 2016
DaBullIT:
Annual fees means end of the year payment in return on the loans or encouragement granted to anyone of the categories


You get the encouragement first and pay at the end of the year


But then this is Nigeria I may be wrong
go back to the website, read & understand that you need to pay first before you become member.

2 Likes

Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by olasmith10(m): 7:26am On Apr 02, 2016
If an individual feels it's a ponzi scheme, there is absolute freedom to kill the idea even in its embryonic stage and viz a viz.
Business comes with extreme risk, if u register with a corporate business licensing organization for $80, annual dues of $50, and you present a fantastic business plan which is convincing enough not only to "break even point" but to generate net profit that cld be threatened by a low risk index annauly.

Ponzi scheme or no ponzi scheme, There is no gain without pain

1 Like

Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by Nobody: 8:34am On Apr 02, 2016
Sounds more like a lottery to me
Re: YESGRANT: Is This The New Ponzi Scheme In Nigeria? by LegatusGlaber(m): 9:24am On Apr 02, 2016
cool

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