The meteoric rise of one of the world's largest Ponzi schemes in Nigeria

[b]In spite of the government's warnings against it, many Nigerians continue to invest in Mavrodi Mundial Movement (MMM), a Russian company that was responsible for one of the world's largest Ponzi schemes of all time.

On 13 December, the company said it was 'freezing' all confirmed accounts. While many that are opposed to the scheme believe the suspension may be an indication of an imminent collapse, MMM Nigeria assured its members it was only freezing the system for a period of one month.
"The reason for this measure is evident. We need to prevent problems during the New Year season, and then, when everything calms down, this measure will be canceled," the administrator said in a message sent to all members.
In spite of the indication that things may not be in order with MMM, Ifeanyi Okoro and some other members remain confident in the scheme.


Confidence remains
"Even with this minor setback, I still strongly have confidence in MMM. The government and the press will amplify this but we all know that MMM is not going anywhere," Okoro said.
Joe Sanya revealed that he had already invested NGN1 million in the scheme. While expressing confidence in MMM, he warned that the only thing that could harm the system is the fear the news would instill fear in MMM's prospective members and confirmed account holders.
"The abrupt action of MMM has brought lot of fears and panic already which could even in itself crash the system. Guiders will have to come up with a plan to put the mind of Nigerians at ease. I don't know how they will do that but it has to be done. We need a constructive counter move from MMM against the enormous negativity going on via social media right now or else my one million naira and those of my friends will be gone."

Michael Mbah, an MMM Nigeria top guider, added: "This is a temporary measure to save the system and saving the system is saving our money. Our money is safe. By January, the system will be back and it will be stronger."
How did MMM successfully convince many Nigerians to look away from the facts, warnings and experiences elsewhere? The key is understanding how MMM works.

'Like a charity'
A member is required to make payments directly into the bank account of another member. When this is successfully done, the payer is qualified to receive three times what he or she paid from someone else.
The scheme was launched in November 2015 in Nigeria but it got popular in 2016 and its philosophy is to financially empower its members who are committed to helping one another. New members are often recruited into the scheme by the promise of 30% monthly return on their investment and higher returns when they offer to assist members that ask for financial assistance.
When Chibuzor Chukwuemeka, a young Nigerian professional first heard of the scheme from a friend, he said he thought it was a scam. But since he joined about four months ago, he has had no regrets.

"I will tell you that MMM has empowered me financially," he told CNN.
Isaiah Olasope, a university lecturer, said he joined the scheme with NGN50,000 (about $158) and was able to make a profit of NGN60,000 (about $190) within two months. He noted that the best approach to succeeding is via referrals and paying as soon as possible.
"I would have continued, but I stopped after I made more than what I put into it," he said.
The scheme is especially popular among new graduates and the unemployed, and even entrepreneurs like Lydia Aborishade, who said she was able to get a tangible return.
"It's like a charity organization where you provide and get help. If you help someone, you get twice what you give," she said.

The government: 'It's fraudulent'
The scheme markets itself as a charity, which is why it celebrated its first anniversary with a Humanitarian week held from Nov 13th -- 19th 2016 by donating relief materials worth NGN5 million to two internally displaced persons' camps in Nigeria's capital city of Abuja.
But the Nigerian government has been unequivocal in discouraging citizens from participating. Through the Central Bank of Nigeria (CBN), it urged citizens not to get involved in MMM, calling it fraudulent.
"We've heard about the activities of MMM, but I want to warn you against it because they are wonder banks that are not regulated. Desist from participating, because they are fraudulent," said Hajiya Kadija Kassim, ‎head, Consumer Protection Department of the CBN.
CBN also unsuccessfully attempted to stop financial transactions related to MMM and the Securities and Exchange Commission of Nigeria (SEC) warned investors about the scheme.
Taking it further, Nigeria's parliament directed security operatives to arrest MMM promoters, but in spite of these efforts, Nigeria has yet to officially criminalize MMM.

A spokesman for the Economic and Financial Crimes Commission (EFCC), Wilson Uwujaren, said they are monitoring the scheme.
The government's position is unsurprising to MMM participants: they claim CBN wants people to keep money in the banks which will in turn be used to further enrich the country's wealthiest.
"The CBN we know has not in recent times made people-oriented policies, most of their policies favor the rich and that is what MMM has come to do -- reduce the gap between the rich and the poor," Chukwuemeka said.

Olasope added that the government is against the scheme because few people still save money in banks.
"I don't think any bank will pay you interest of up to 5% in a month when you keep money with them, but MMM pays 30%. CBN officials know that MMM will make Nigerians to stop taking money to banks so their best approach is to make it illegal," he said.

Pastors for MMM?
The MMM conversation has been extended to churches, where the official position varies from one place of worship to another.
At the Redeemed Christian Church of God (RCCG), the country's largest Pentecostal church, some pastors are allowing MMM promoters to pitch the scheme to members from the pulpit. While others are against it, many are at crossroads.
Pastor Agbede Mayowa, who heads a branch of the church in Lagos, said MMM is a real dilemma for clergymen. Instead of having a position in the scheme, he said he is promoting an open conversation on the subject among members of the congregation.
"I have been inundated with messages and calls on MMM. 'Pastor, is it a sin? Should a Christian be involved?' Personally, I don't think it's a sin even though I have my reservations. Most people however think otherwise," he said.
Ibadan-based economist, Lekan Adigun said the wide acceptance of MMM in Nigeria in spite of numerous failures of similar schemes is not in line with industry edicts; it preys on the economic recession and citizens' desire for quick wealth.
"According to the Alexa ranking, MMM's is the fifth most visited website in Nigeria, more popular than Facebook. It has also shown that Nigeria isn't really a mobile first nation and getting the support of the government is overrated," Adigun said.

"I think techies should leverage this MMM craze to promote online payment adoption. We'll be solving two problems at once. We'll ease pressure on banks and then entrench online payment if the burst is well managed," he said.
Many experts believe that by not banning MMM, the Nigerian government positions the country as a target for copycat programs.
"It is really unfortunate that even though many Nigerians have lost money to similar Ponzi schemes in the past, the Nigerian government is still reluctant to go hard on MMM.
"When MMM eventually collapses, which will definitely happen, the exploitation of the citizens will continue under different names. This is going to be very harsh on the people of a country that is currently in recession," said Adigun.
For MMM, experts believe that its next task is to ensure that its community in Nigeria continues to be its firm advocate and the pyramid scheme is sustained for as long as possible while for the Nigerian government, restoring people's confidence in the banking sector is essential in addition to finding a way to ensure that activities of Ponzi schemes are regulated and protecting the funds of participants -- even when they act against government directives.
MMM Nigeria didn't immediately return a request for comment from CNN.

http://edition.cnn.com/2016/12/14/africa/mmm-ponzi-scheme-nigeria/

Interesting.

The first time I heard about this MMM thing,was when some of my well to do friends from out of the blues started asking me for money from Nigeria a couple of months ago.

When more than 8 asked me for money,I now knew it was not a coincidence,and so I became curious. And I was able to get the information out from 2,who had invested Millions each that it was MMM.

The first thing I did,was look it up if it was legal in the US,since the US is the biggest market for anything in the World.

And the United States classified it as a Ponzi(419)Scheme,and it is totally outlawed by the Country.

There is a reason I go with the US classification of things,as they tend to be realistic about everything.

In the United States,there are no Landcruisers Cars,no Avensis and Peugeot products as they do not meet the United States standards for safety. But these cars are dumped in Africa.

This Country will not touch anything sub standard.

So if the MMM is banned in the US as a fraud,then it can only mean it is fraudulent.

some pastors said it was demonic but some ignored

And some mmm die hard block mind will not listen... They still have small HOPE

HungerBAD:
Following

booker T!

SpaceBooked

They will not understand!


If buhari is their president by now they would have joined YYY AAA HHH OOO and MMM all at the same time!

Chai!

Ok

Eni oriyo odile

They keep saying "our money, our money, our money " like they have a central account where they have stocked money which they will use to pay out.
It's still the same Nigerians that will pay Nigerians and trust me, no sane Nigerian however greedy will pay in any money to anyone on mmm come January.

Hahahahahahaha..

MMM is an INvestment.
We warned them oooo
All you have to do is provide help and Get help. In 30days, you'll get 30%...
AWOOF..

wetyn concern me
only greedy people do mmm

Atiku2019:
SpaceBooked

.

MMM! Progress!

Scam of 2016!

HungerBAD:
Interesting.

The first time I heard about this MMM thing,was when some of my well to do friends from out of the blues started asking me for money from Nigeria a couple of months ago.

When more than 8 asked me for money,I now knew it was not a coincidence,and so I became curious. And I was able to get the information out from 2,who had invested Millions each that it was MMM.

The first thing I did,was look it up if it was legal in the US. And the United States classified it as a Ponzi(419)Scheme.

There is a reason I go with the US classification of things,as they tend to be realistic about everything.

In the United States,there are no Landcruisers Cars,no Avensis and Peugeot products as they do not meet the United States standards for safety. But these cars are dumped in Africa.

So if the MMM is banned in the US as a fraud,then it can only mean it is fraudulent.

^^^
Get ready, mmm guys are comming for ya head by morning....lol

No do MMM , dem no gree , Now that it has burnt them in the hand, they are already blaming Buhari , But wetin concern me ?



As for the Americans making fun of Nigerians

Una go hear am, Boys must celebrate christmas , and guess where mugu plenty pass ?? Yankee ,


It's only a matter of time

How MMM look at CNN

You guys should rest already, let this MMM talk die abeg. You didn't join MMM, your money isn't stuck der so why you crying more than the bereaved?

Oga so if avensis is not accepted in the USA then its really not b cars . Peugeot is really an okada company because Americans say so.. Smh!!! Where did we keep our brains

HungerBAD:
Interesting.

The first time I heard about this MMM thing,was when some of my well to do friends from out of the blues started asking me for money from Nigeria a couple of months ago.

When more than 8 asked me for money,I now knew it was not a coincidence,and so I became curious. And I was able to get the information out from 2,who had invested Millions each that it was MMM.

The first thing I did,was look it up if it was legal in the US. And the United States classified it as a Ponzi(419)Scheme.

There is a reason I go with the US classification of things,as they tend to be realistic about everything.

In the United States,there are no Landcruisers Cars,no Avensis and Peugeot products as they do not meet the United States standards for safety. But these cars are dumped in Africa.

So if the MMM is banned in the US as a fraud,then it can only mean it is fraudulent.

MMM and a rope are the only things on my mind right now, someone please help.

Some one just paid my brother two days ago even after the halt. Don't say what you don't know. The future isn't written on stone.

ThuGnificenX:
They keep saying "our money, our money, our money " like they have a central account where they have stocked money which they will use to pay out.
It's still the same Nigerians that will pay Nigerians and trust me, no sane Nigerian however greedy will pay in any money to anyone on mmm come January.

But one question we should really ask ourselves is that, what will happen if mmm does really come back in January?
What will be the ppla reaction ?

One of my friends serving asked me for 50k or 60k around Aug that he will pay me interest of up-to 10k by dec , but I denied him Bc he sounds so suspicious, but after some enquiries n interrogations, I learnt that he z into mmm, and used "biz stuff" to cover up.
After friends told me about mmm, I started googling about them, but all I can see z bad record n negative impact wherever they left, I then came to realize that some of the world most civilized n biz oriented countries like US, China, Russia hv banned them in their various countries.
I asked my self who will I confront should I be shortchanged?. where will I go to lay a complaint?. is there any customers care outlets ?
I can't take a risk that will cost my life n happiness , it is like telling me to swallow drug n travel to Malaysia that it pays, Yes it actually pays but what if... or asking me to confront a bullion van carrying currency with AK~47.
Bc there are all risks 2wards becoming a millionaire, but not all risks re worth taking.
I will only invest my money in a legitimate biz that have a well defined economic routines, where there will be an Assurance of up-to 70% of my capital should there be a loss in d long-run.
I believe that the World billionaires didn't make their wealth by ponzi scheme, rather by venturing into meaningful biz.

hahaha.....

Meanwhile, who else has noticed that MMM amd Buhari both have some things in common?

1) Both have Ms

2) They are both ponzi schemes

3) Their ardent supporters are so deluded. Even when everything has "crashed" or "frozen", you hear things like: it's a worthy risk or it's gonna get better soon. Meanwhile, they're suffering as a result of their action.

4) Fans of both are Suicidal. Very risky set of people to jokingly "bully".

dem eye go soon clear by January , denial is the first step.

How else will it crash?
You expect owner to address a LIVE broadcast
"Dear MMM people, We hereby want to crash..."

Amazing discovery. Most Buhari supporters are the ones bad mouthing MMM. A scheme they should be grateful for keeping Nigerians busy and taking their attention off the most clueless and confused government Nigeria has ever had. Could religion be the reason Smh

ThinkSmarter:
One of my friends serving asked me for 50k or 60k around Aug that he will pay me interest of up-to 10k by dec , but I denied him Bc he sounds so suspicious, but after some enquiries n interrogations, I learnt that he z into mmm, and used "biz stuff" to cover up.
After friends told me about mmm, I started googling about them, but all I can see z bad record n negative impact wherever they left, I then came to realize that US, China, Russia hv banned them in their various countries.
I can't take a risk that will cost my life n happiness , it is like telling me to swallow drug n travel to Malaysia that it pays, Yes it actually pays but what if... or asking me to confront a bullion van carrying currency with AK~47.
Bc there are all risks 2wards becoming a millionaire, but not all risks re worth taking.
I will only invest my money in a legitimate biz that have a well defined economic routines, where there will be an Assurance of up-to 70% of my capital should there be a loss in d long-run.
I believe World billionaires didn't make their wealth by ponzi scheme, rather by venturing into meaningful biz.

legitimate like in shares of Nigerian companies, Savannah BAnk and the shaking Heritage bank. Legitimate ko, buhari ni

HungerBAD:
Interesting.

The first time I heard about this MMM thing,was when some of my well to do friends from out of the blues started asking me for money from Nigeria a couple of months ago.

When more than 8 asked me for money,I now knew it was not a coincidence,and so I became curious. And I was able to get the information out from 2,who had invested Millions each that it was MMM.

The first thing I did,was look it up if it was legal in the US,since the US is the biggest market for anything in the World.

And the United States classified it as a Ponzi(419)Scheme,and it is totally outlawed by the Country.

There is a reason I go with the US classification of things,as they tend to be realistic about everything.

In the United States,there are no Landcruisers Cars,no Avensis and Peugeot products as they do not meet the United States standards for safety. But these cars are dumped in Africa.

This Country will not touch anything sub standard.

So if the MMM is banned in the US as a fraud,then it can only mean it is fraudulent.

--Modified--

Lol.

Shout out to Ayokunleayoolashakirudeen , Oh boy you have the longest name on Nairaland.

I stopped counting the letters when i got to 23.

I salute you.

Same US dt av neo-colonised us, asked us to pratice gay,corrupted our children,protect our fraud politicians,killed us by selling arms to a corrupt govt.

Sabotage ajakota iron ore company dt was to be built by russian!

Made nigeria a dependent state

I can't list but to mention but a few

Can I ask you? Have you seen US do anything dt doesn't serve d interest of their govt!

D said weapon of mass destruction in Iraq am still looking for it!

Libya is an example of wt US can do

My broda MMM is in australia and stop abeg leave US mata 4 US