7 Ponzi Schemes That Hit Nigeria Hard

Ponzi schemes have left deep scars in the hearts of Nigerians, some could not recover the amount of money they put into the scheme. 

These Ponzi schemes often appear with fancy names and promises of huge profits in a short time. But underneath all the packaging, it’s the same trick: they use money from new investors to pay older ones until it all crashes.

What makes these schemes dangerous is how convincing they can be. They promise easy money, ask you to bring in others, and give no clear explanation of how the money is made. 

And when they finally crash, as they always do, they leave people broke, heartbroken, and filled with regret.

Let’s take a look back at 7 of the most popular Ponzi schemes that Nigerians fell for:

1. MMM Nigeria

No Ponzi scheme hit Nigeria harder than MMM. It came in like a storm around 2016 and swept thousands of people off their feet with the promise of 30% monthly returns. Started by Russian Sergey Mavrodi, MMM stood for Mavrodi Mundial Moneybox. 

It was everywhere on the radio, on social media, and in everyday conversations. Despite warnings from the government and experts, people poured their money in. When it eventually collapsed, many lost their life savings. Some even lost their lives from shock and depression. According to the NDIC, Nigerians lost over ₦18 billion to MMM.

2. Helping Hands International

After MMM crashed, many other schemes popped up to take its place. One of them was Helping Hands. It disguised itself as an empowerment programme and required participants to pay a registration fee of about ₦6,600 ($40 then) and bring in two new people. 

They promised all kinds of rewards: skill training, gadgets, cars, loans, and scholarships. Big brand names like Diamond Bank, Glo, HP, and Hyundai were mentioned to make it look legit. But no one was actually selling any product, and the numbers never added up. Like the rest, it vanished, leaving people in tears.

3. Twinkas

Twinkas became popular after MMM’s fall. It described itself as a peer-to-peer donation platform that promised to double your money. You could invest between ₦20,000 and ₦100,000 and get up to 200% return in 21 days. 

Instead of a central account, people were asked to send money directly to two other participants. 

If you didn’t pay quickly, you were removed from the system. But as soon as fewer people joined, the whole platform collapsed just like a house of cards.

4. Yuan Dong Ponzi Scheme

This scheme came from China and promised big profits through cryptocurrency trading. People were told to invest between ₦10,000 and ₦240,000 and expect daily returns of ₦80 to ₦2,400. Again, the government warned people to stay away. 

But many Nigerians still joined, hoping to cash in. Sadly, it ended like the rest—with people losing their hard-earned money. The lesson? Any scheme that promises unrealistic returns is almost always a scam.

5. Galaxy Transport

This one claimed to be a transport and logistics company. It said it moved goods across Africa and invited people to “invest” in the business. They promised large returns within a short time. For a while, it looked real. 

But then one day, it disappeared along with the money. They didn’t take people across Africa. They just transported everyone’s cash to nowhere.

6. Swiss Golden

Swiss Golden presented itself as a gold investment platform. It said investors could earn money through the buying and selling of gold bars and had a network marketing model. 

Their website claimed to have nearly half a million users from over 190 countries. But many Nigerians found out the hard way that there were no real gold bars, only losses and fake promises.

7. CBEX (Ongoing Debate)

CBEX is one of the most talked-about platforms on social media today. Some Nigerians see it as a great way to make fast money, while others believe it’s heading for a crash. It’s being promoted as a digital asset trading platform, but many are warning that the signs of a Ponzi scheme are all there. 

Time will tell whether CBEX survives or ends up on this same list. But if history is any guide, it’s wise to stay cautious.