Nigerians continue to lose their hard-earned money and peace of mind to Ponzi schemes. In 2022, the Nigeria Deposit Insurance Corporation (NDIC) disclosed that Nigerians lost N911.45 billion to Ponzi and related fraudulent activities in the last 23 years. The corporation noted that MMM alone accounted for N18 billion of that figure.
Ponzi schemes continue to thrive on the hopes of a quick return on investment, particularly in a country battling economic challenges. CBEX is the most recent of this, and their downfall has added to Nigeria’s growing list of financial scams.
CBEX launched in Nigeria in July 2024 with a promise of a 100 percent return on investment within 30 days. Users were encouraged to refer others, with bonuses and tiered rewards based on the size of their referral network.
However, CBEX crashed in April 2025. According to the Securities and Exchange Commission (SEC), CBEX was unregistered and operated illegally.
Emomotimi Agama, director general of the SEC, while speaking at a virtual engagement with fintech stakeholders on the Investment and Securities Act (ISA 2025) on Monday, warned Nigerians against patronising unregistered platforms.
To curtail the spread of these schemes, the SEC has issued multiple cease-and-desist orders to unregistered operators, while also forwarding several cases to law enforcement agencies such as the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution.
In many of these cases, the agency has worked together with the EFCC, the Central Bank of Nigeria (CBN), and other institutions to take decisive action.
Over the years, SEC Nigeria has maintained a strong position against Ponzi schemes and other illegal investment operations that have defrauded millions of Nigerians. Under the newly revised ISA 2025, operators of Ponzi schemes now face a 10-year jail term and a N40 million fine if convicted.
Here are some Ponzi schemes that Nigerians have fallen victim to:
Mavrodi Mundial Moneybox (MMM)
MMM, a Russian company, promised investors a 30 percent monthly return. It attracted over three million Nigerians and crashed in December 2016, leading to an estimated N18 billion in losses.
Ultimate Cycler
Ultimate Cycler sprang up after MMM’s crash with a promise of a 400 percent return on investment. This lured thousands to pay N12,500 in a chain-style operation. However, the website shut down abruptly, leaving users stranded.
Twinkas
Twinkas started in 2017 and promised a 200 percent return. The scheme stopped after new sign-ups slowed down, leaving many participants unpaid and frustrated.
D9 Club
D9 Club gained prominence with claims of profits from global sports betting in 2017. It had operations across countries, and the scheme folded up. Its Nigerian victims were left counting their losses at over N10 billion.
MBA Forex Trading and Capital Investment Limited
MBA Forex Trading and Capital Investment Limited promised professional forex trading returns in 2020. Some Nigerian investors trusted the platform, which led to over N171 billion in investments. The platform eventually shut down without fulfilling payout obligations.
Maxwell Odum, the CEO, was declared wanted by the Economic and Financial Crimes Commission (EFCC).
Famzhi Interbiz Limited
Famzhi Interbiz Limited was a Ponzi scheme in 2021 which posed as a cooperative. It promised up to 30 percent monthly returns. The scheme attracted heavy investment until the SEC deemed its activities illegal, resulting in investor losses amounting to an estimated N30 billion.
Brisk Capital
Brisk Capital came up in 2021 as a tech-driven investment firm that lured some Nigerians, especially youths, with promises of 30 percent monthly returns. Dominic Ngene, founder of Brisk Capital, used social media to build trust, but the platform collapsed within months, resulting in an estimated loss of over N2 billion.
Ovaioza Farm Produce Storage Business
Ovaioza Farm Produce Storage Business presented itself as an agricultural investment platform, offering up to 70 percent returns. It collapsed in 2022. The losses estimated were over N3 billion.
Red King Chinmark Group
Red King Chinmark Group claimed to invest in hospitality, transportation, and other sectors. It crashed in 2022 after defaulting on payments, resulting in estimated investor losses of over N40 billion. Mark Chinendu, the CEO of Red King Chinmark Group, faced public backlash and scrutiny over unfulfilled promises.
