MMM, other ponzi schemes cost Nigerians N18bn – SEC
Over three million Nigerians have lost about N18 billion through Ponzi schemes, the Securities and Exchange Commission (SEC) has disclosed.
Lamido Yuguda, director-general, SEC, said this during a webinar organised by the commission on Tuesday.
Ponzi schemes are fraudulent investing scams which generate returns for early investors with money taken from later investors.
They are similar to pyramid schemes in that both are based on using new investors’ funds to pay the earlier backers.
Speaking at the webinar, Yuguda said, “Ponzi schemes operate with unsustainable operating models that ultimately lead to huge losses for investors.
“Following the collapse of the MMMNFCNN Ponzi scheme, the Nigerian Deposit Insurance Corporation had estimated that over three million Nigerians lost about N18 billion.”