Nigeria’s Ponzi Scheme History: 10 Notorious Scams That Tricked Millions

Nigerians are so vulnerable when it comes to making double of their money—who wouldn’t be? In a country where the cost of living keeps rising and opportunities often feel out of reach, the promise of quick, easy returns can sound like a dream come true.

But that dream has turned into a nightmare for millions.

Over the years, Ponzi schemes have taken advantage of people’s hope—hope to pay rent, take care of family, or simply escape financial pressure.

From sleek online platforms to loud street campaigns, these scams have come in many forms. One by one, they crashed, leaving behind empty bank accounts and heavy hearts.

In this article, we trace some of the biggest Ponzi schemes that shook Nigeria, from the newest digital scams to old-school wonder banks.

It’s more than just a list—it’s a reminder to stay alert, stay informed, and protect what you’ve worked so hard for.

CBEX (2024–2025)

Platform Type: Cryptocurrency Investment
Estimated Losses: Undisclosed
CBEX presented itself as a digital platform for cryptocurrency trading, promising high and fast returns. It gained traction on social media, especially among Nigerian youths, with claims of guaranteed payouts.

However, when users could no longer withdraw their funds, alarm bells rang. Although CBEX denied being a scam and promised withdrawals would resume, authorities began investigations. Many victims are still waiting for their funds.

MBA Forex and Capital Investment Limited (2018–2021)

Platform Type: Forex Trading
Estimated Losses: ₦213 billion
What Happened:
MBA Forex promised investors up to 15% monthly returns through foreign exchange trading. The scheme targeted professionals and civil servants, and at its peak, amassed hundreds of millions of dollars.

It collapsed in 2021, leaving thousands of investors stranded. Its CEO was arrested and investigations revealed that there was no legitimate forex trading behind the scenes.

3. Twinkas and Ultimate Cycler (2016–2017)

Platform Type: Peer-to-Peer (P2P) Donations
Estimated Losses: Millions
What Happened:
After the fall of MMM, several copycat platforms emerged. Twinkas and Ultimate Cycler were among the most popular. They promised 100–200% returns, attracting thousands of users. Both operated like chain referral systems and couldn’t sustain the inflow of new members, leading to their eventual collapse within months.

4. Givers Forum and I-Charity (2016–2017)

Platform Type: “Help and Get Help” Models
Estimated Losses: Unknown
What Happened:
These donation-based platforms mimicked MMM’s format, convincing users that they were helping others while profiting. They offered high returns with little risk, but no real investment backed them. Both platforms disappeared as quickly as they rose, leaving many users in financial distress.

5. MMM Nigeria (2015–2016)

Platform Type: P2P Financial Network
Estimated Losses: Over ₦18 billion
MMM Nigeria is arguably the most infamous Ponzi scheme in the country’s history. It was launched in 2015 by Russian Sergey Mavrodi and promised 30% monthly returns.

Over 2.4 million Nigerians joined the scheme. In December 2016, it froze users’ accounts, claiming a temporary pause. The pause became permanent, causing nationwide panic and even reports of suicides.

6. Nospecto (Early 2000s)

Platform Type: Oil and Gas Investments
Estimated Losses: Unknown
Nospecto Oil and Gas claimed to invest in oil operations and promised investors substantial monthly profits.

Regulatory investigations revealed it operated more like a Ponzi scheme than a real business. Assets were eventually seized by Nigerian authorities, and many investors lost their money.

7. Planwell (1990s)

Platform Type: “Wonder Bank”
Estimated Losses: Millions
Popular in Edo State, Planwell operated like an unofficial financial institution, collecting deposits and offering high-interest returns without a valid license.

The bubble eventually burst when too many depositors wanted their money back.

8. Umana-Umana (1980s–1990s)

Platform Type: Community Lending Scheme
Estimated Losses: Widespread, mostly undocumented
Umana-Umana was one of Nigeria’s earliest known Ponzi schemes, operating in Port Harcourt and Calabar.

It lured in locals with promises of quick riches and eventually collapsed, laying the groundwork for skepticism toward similar schemes in the future.

9. Forum Investment (1990s)

Platform Type: High-Yield Investment
Estimated Losses: Hundreds of millions
Another old-school “wonder bank,” Forum Investment collected deposits from unsuspecting customers and promised outrageous monthly returns.

It operated across major cities until it was shut down by regulators.

10. 58 Illegal Ponzi Schemes (Ongoing)

Platform Type: Online Investment and Crypto Trading
Estimated Losses: Ongoing investigations
As of March 2025, the Economic and Financial Crimes Commission (EFCC) released a list of 58 illegal Ponzi schemes still operating in Nigeria.

These platforms disguise themselves as legitimate fintech or crypto investment firms and continue to lure in unsuspecting Nigerians despite widespread warnings.