The Central Bank of Nigeria (CBN) has warned Nigerians to be careful of any deposit money institution that is not insured by the Nigeria Deposit Insurance Corporation (NDIC) especially the trending MMM Nigeria community.

The bank through its the acting Director of Corporate Communications, Mr. Isaac Okoroafor, made this known yesterday against the proliferation of wonder banks in the country in recent times.

Okoroafor said such deposit money institutions were dubious present Ponzi schemes.

“At times like this when the economy has suffered some decline, Nigerians should be very careful with those they deal with. Any institution that is not licensed by the CBN to accept deposits should not be given money to keep under any guise,” he advised.

He warned Nigerians to beware of the so-called wonder banks, explaining that they were makeshift institutions to dupe people.

“We can vouch for the banking system. The deposit money banks are the only licensed institutions to take deposits. If you need to deposit money in any form, go to any of the deposit money banks and put your money, you can buy fixed income instruments or invest in stocks,” he said.

Okoroafor said the CBN could not guarantee the unregistered institutions, insisting that when depositors lose money to them, the bank would not be able to help them.

“These people always come with very interesting propositions. These are fraudsters who are just out there to collect people’s money and run away as soon as they hit their target. There is no insurance because the NDIC does not even protect them against such risks when they occur,” the CBN said.

He said the CBN was intensifying efforts and liaising with the various security agencies to identify the promoters of these schemes and have such persons arrested and prosecuted, adding that anyone caught with them would also be made to face the law.

Promoters of wonder banks and other pyramid schemes in the country are currently taking advantage of the rising level of unemployment as well as the shrinking disposable income to attract unsuspecting prey.

From Lagos to Port Harcourt and some other big cities in the country, owners of these illegal businesses have been offering Nigerians mouth-watering interest rates, which cannot be found in the banking system, in a bid to attract large number of customers before they run away with huge cash.

For instance, at the Ojuelegba area of Lagos, THISDAY was recently given a small handbill advertising investment schemes that offers 30 per cent returns in 30 days.

Also, there is a new Ponzi scheme called ‘MMM’ that is spreading like wildfire. A lot of young school leavers have already signed on to this scheme, which the promoters are marketing as a “mutual fund.”

“MMM offers its participants 30 per cent growth rate per month for each and every donation they make into the system… MMM belongs to the community, its sustainability depends on the activities of the people that make up the MMM Nigeria community, that is me and you and other MMM Nigeria participants,” the promoters wrote in an online advertisement.

Typically, what promoters of such pyramid scheme do is that they offer rates far beyond what is obtainable in commercial banks. This would always attract a lot of people who would always rush in to stake their funds. But, those who join the scheme late would always be the ones to lose their shirts as they would have been convinced by those that joined earlier to invest huge amounts of money.

But experts have warned against falling for the bait of illegal deposit-taking institutions which are not licensed by the CBN, saying that their only intention is to defraud members of the public.

Recall that with the Nigerian economy is in recession, the National Bureau of Statistics (NBS) recently revealed that the country’s gross domestic product (GDP) contracted by 2.06 per cent in the second quarter of 2016, compared to the negative growth of 0.36 per cent recorded in the first quarter of 2016.

Also, national unemployment rate also rose to 13.3 per cent in the second quarter of 2016, from 12.1 in the first quarter of 2016.



http://www.financialwatchngr.com/2016/09/14/cbn-warns-nigerians-against-mmm-calls-it-wonder-bank/

No one is sure of the MMM outcome but what l believe is that the scheme has an end and when it ends, pray that it is not your money that is left in there

luvlyoracle:
Who CBN dn epp??

Contact me for more info jhur

mind you it dosnt work the way u think.

I am not here to get more info....

Its sure a wonder bank...
Which bank could ever assure you of a 30% bonus?


But enjoy the offer while it last..
Only for the wise!!

Come on! Give me a break! The truth is conventional financial institutions have grossly failed us in Nigeria and the regulatory bodies have merely given them a slap on the wrist.

When the Stock market crashed and investors lost their hard earned resources what came of it? Was any one involved in the Stock market scam prosecuted?

When banks went under due to Board/Management unwholesome practises what punitive measures did CBN et all take? Innocent bank customers lost huge sums of money without remedy

Long live MMM

CBN be beefing since God knows when. They can't get our banks to give us more interest on our deposits yet be beefing the ones coming to give us let them leave us alone, na our money! #WatchYourBackTho .....this is NOT an endorsement of MMM

it ruite unfortunate that CBN has joined d team of ignorant wailers attacking MMM without finding out how it works.how wil MMM RUN wit peoples money,is MMM a bank?do they av access to anybody's money that they wil run away wit?.no body pays to MMM,It is only a
platform connecting participant who donate to each other directly thru individual bank accounts.they should stop attacking MMM,no participant har ever lost a dime to MMM over d yrs
Long live MMM

shogat:
The Central Bank of Nigeria (CBN) has warned Nigerians to be careful of any deposit money institution that is not insured by the Nigeria Deposit Insurance Corporation (NDIC) especially the trending MMM Nigeria community.

The bank through its the acting Director of Corporate Communications, Mr. Isaac Okoroafor, made this known yesterday against the proliferation of wonder banks in the country in recent times.

Okoroafor said such deposit money institutions were dubious present Ponzi schemes.

“At times like this when the economy has suffered some decline, Nigerians should be very careful with those they deal with. Any institution that is not licensed by the CBN to accept deposits should not be given money to keep under any guise,” he advised.

He warned Nigerians to beware of the so-called wonder banks, explaining that they were makeshift institutions to dupe people.

“We can vouch for the banking system. The deposit money banks are the only licensed institutions to take deposits. If you need to deposit money in any form, go to any of the deposit money banks and put your money, you can buy fixed income instruments or invest in stocks,” he said.

Okoroafor said the CBN could not guarantee the unregistered institutions, insisting that when depositors lose money to them, the bank would not be able to help them.

“These people always come with very interesting propositions. These are fraudsters who are just out there to collect people’s money and run away as soon as they hit their target. There is no insurance because the NDIC does not even protect them against such risks when they occur,” the CBN said.

He said the CBN was intensifying efforts and liaising with the various security agencies to identify the promoters of these schemes and have such persons arrested and prosecuted, adding that anyone caught with them would also be made to face the law.

Promoters of wonder banks and other pyramid schemes in the country are currently taking advantage of the rising level of unemployment as well as the shrinking disposable income to attract unsuspecting prey.

From Lagos to Port Harcourt and some other big cities in the country, owners of these illegal businesses have been offering Nigerians mouth-watering interest rates, which cannot be found in the banking system, in a bid to attract large number of customers before they run away with huge cash.

For instance, at the Ojuelegba area of Lagos, THISDAY was recently given a small handbill advertising investment schemes that offers 30 per cent returns in 30 days.

Also, there is a new Ponzi scheme called ‘MMM’ that is spreading like wildfire. A lot of young school leavers have already signed on to this scheme, which the promoters are marketing as a “mutual fund.”

“MMM offers its participants 30 per cent growth rate per month for each and every donation they make into the system… MMM belongs to the community, its sustainability depends on the activities of the people that make up the MMM Nigeria community, that is me and you and other MMM Nigeria participants,” the promoters wrote in an online advertisement.

Typically, what promoters of such pyramid scheme do is that they offer rates far beyond what is obtainable in commercial banks. This would always attract a lot of people who would always rush in to stake their funds. But, those who join the scheme late would always be the ones to lose their shirts as they would have been convinced by those that joined earlier to invest huge amounts of money.

But experts have warned against falling for the bait of illegal deposit-taking institutions which are not licensed by the CBN, saying that their only intention is to defraud members of the public.

Recall that with the Nigerian economy is in recession, the National Bureau of Statistics (NBS) recently revealed that the country’s gross domestic product (GDP) contracted by 2.06 per cent in the second quarter of 2016, compared to the negative growth of 0.36 per cent recorded in the first quarter of 2016.

Also, national unemployment rate also rose to 13.3 per cent in the second quarter of 2016, from 12.1 in the first quarter of 2016.



http://www.financialwatchngr.com/2016/09/14/cbn-warns-nigerians-against-mmm-calls-it-wonder-bank/

abegi! when una dey crumble our economy with embezzlement and corruption, una no know this one. Nigerians are wiser now and everyone knows that one day it may crash. People die everyday with their billions in the bank being inherited by people who are not worth it. You are telling me nonsense. Life itself is full of risks.

CBN is wrong for calling MMM wonder Bank.

MMM IS NOT A BANK!

Another Ponzi scheme

What the adocates have failed to explain is how the system generate the 30% that it pays out.

Even the economy isn't growing 30%

On this, I will gladly pass!

Depositors who lost their money to the distressed banks got maximum amount of N50,000 irrespective of their deposit. Who CBN help self? Abeg, Visit

Hhh,

MMM was real but not again

me I blame Buhari

MMM is still paying...one can't just fold hands
and be waiting for govt to do something about
the economy.
Man's needs to survive oh.
by the way, y government no see bet9ja close.

dmostcheerful:
Come on! Give me a break! The truth is conventional financial institutions have grossly failed us in Nigeria and the regulatory bodies have merely given them a slap on the wrist.

When the Stock market crashed and investors lost their hard earned resources what came of it? Was any one involved in the Stock market scam prosecuted?

When banks went under due to Board/Management unwholesome practises what punitive measures did CBN et all take? Innocent bank customers lost huge sums of money without remedy

Long live MMM

You will not hear now. Hope you will still be shouting "long live MMM" when ur money dies with them.

Okay

Okay!

I thought so too.

One thing i still don't understand about this MMM is how they make the 30% they give everyone. Cause even people who ask for help don't pay back with interest so how do they make profit and also get 30% to pay everyone?

... and yet some will still ignore this noble warning.

The ones who will bear the brunt after the collapse of this scheme are the ones that have their moneys trapped therein.

So enjoy while it last and hopefully luck shines on you.

Lol at some comments above. Most of all the promoters are so sure the program is bound to fail sooner or later but they are advertising themselves so as to recoup their investment and profits before the burst of the bubble.

Yet some fools won't heed to this call

C B N = Corruption Bank for Nigerians