THOUSANDS of Nigerians had watched helplessly as MMM, the infamous Russian-born mutual aid scheme, crumbled overnight in 2016. Despite its accompanying shockwaves, MMM was far from the last Ponzi scheme in Nigeria. This report traces the rise and fall of some Ponzi schemes in Nigeria over the past ten years.
Nearly a decade later, the cycle continued with different names, some flashier, hiding behind corporate branding or charismatic influencers. Others still use religious language and promise of “community upliftment.”
2015–2017
The modern wave of Ponzi schemes in Nigeria began with MMM Nigeria, launched in 2015. Framed as a mutual aid community, MMM promised a 30 per cent return on funds donated to fellow members. It quickly gained traction via WhatsApp groups, Church testimonies, and social media influencers.
By December 2016, the scheme collapsed spectacularly, leaving many in financial ruin and cementing MMM as the benchmark for future frauds.
Following closely behind was Ultimate Cycler, a multilevel pyramid scheme where members paid ₦12,500 with the expectation of receiving ₦50,000. Despite brief popularity, its servers crashed within months.
2018–2020
Loom Nigeria emerged in 2019 as a WhatsApp-based gifting circle, luring participants with the promise of eightfold returns. Invest ₦1,000 and get ₦13,000 in return by recruiting others into the scheme, was its popular slogan. It quickly gained popularity among students and low-income earners but collapsed within weeks. The Securities and Exchange Commission (SEC) had issued a warning at the time, classifying it as a Ponzi scheme.
Around the same period, Pennywise Wealth Management blended the rising digital savings culture with investment opportunities. Backed by a strong Instagram presence and influencer marketing, it earned public trust. However, the platform vanished shortly after, citing “internal audits” as the reason for its sudden disappearance.
2021–2023
As Nigerians grew more skeptical of obvious scams, Ponzi schemes began adopting corporate and even religious facades to gain credibility.
One of the most prominent, MBA Forex, promised 15 per cent monthly returns through forex trading. The scheme attracted many Nigerians before collapsing in 2021 amid investigations by the Economic and Financial Crimes Commission (EFCC). Though it operated as a registered business, this formality only served to mask its fraudulent nature.
That same year, The ICIR reported growing concerns among investors about Racksterli, a platform that guised as an online affiliate marketing company. Under its “Standard” package, subscribers were encouraged to invest ₦14,000 with promises of earning about ₦722 daily amounting to ₦21,600 in 30 days, or over 154 per cent profit in just a month. Despite the red flags, Racksterli gained traction partly due to endorsements by celebrities such as Afrobeats star Davido and actress Nancy Isime, who featured the company as a sponsor on the first season of The Nancy Isime Show.
Meanwhile, Chinmark Group merged real estate, hospitality, and spiritual rhetoric to appeal to Christian investors. Another high-profile scheme, the Ovaioza Farm Produce Storage Business, tapped into Nigeria’s agri-tech boom. Its founder leveraged personal charisma, livestreaming supposed financial updates and fabricated impact stories to maintain investor confidence.
2024–2025
By 2024, fraudsters had begun integrating buzzwords like AI, crypto, DAO, and NFTs into their schemes. QZ Asset Management stood out with flashy dashboards and TikTok videos promoting “automated daily returns.” Similarly, a wave of NFT staking platforms and fake blockchain communities emerged, promising passive income with no clear business model.
In December 2024, a massive crypto-romance scam operating out of Lagos was busted by the EFCC. The scam, which used love traps and fake crypto platforms to defraud foreigners, led to the arrest of 792 suspects, including Chinese and Filipino nationals one of the largest anti-fraud crackdowns in Nigerian history.
In March, the EFCC released a list of 58 illegal investment firms, including Farm4Me, Wales Kingdom Capital, Chinmark Homes, and Crowdyvest. This marked a rare instance of proactive public disclosure from a regulatory body.
The most recent in this trend is CBEX, which collapsed in the early weeks of April. Report by The ICIR revealed that the scheme’s operators have been arrested by the EFCC, with investigations currently ongoing. In previous reports, The ICIR also outlined how to identify Ponzi schemes and examined why many Nigerians continue to fall for them despite growing awareness.
Fatimah Quadri is a Journalist and a Fact-checker at The ICIR. She has written news articles, fact-checks, explainers, and media literacy in an effort to combat information disorder.
She can be reached at sunmibola_q on X or fquadri@icirnigeria.org