MMM Nigeria, the popular digital Ponzi Scheme has disclosed via a counter on its site that its members in Nigeria are now now 1,602,048.
PageOne.ng cannot independently verify the data released on MMM Nigeria’s website but the data has been growing aggressively for the past three months since it began an aggressive marketing across the country using its semi-independent structure called the ‘guiders’ system.
The ‘company’ running MMM did not break down the membership data into active and inactive members.
An MMM critic and Ponzi Scheme analysts told PageOne.ng that MMM Nigeria perhaps has less than the figure it quoted on the site. His argument is that many members are not consistent with the GH-PH system that ensures the system runs smoothly. To ensure the scheme does not collapse, MMM quickly deletes these members from the system. He estimated that such people are up to 40% of the 1.6 million people quoted on the site.
MMM Nigeria is operated by individuals and groups of people who introduced the scheme in Nigeria. In August, PageOne revealed that one Ernest Mbanefo registered MMM Nigeria’s domain name.
MMM has received a huge acceptance amongst Nigerians who have seen it as a means of escaping poverty from paying for basic needs, to buying their dream car, throwing big wedding ceremonies and living a life of financial freedom. This is a big sell for a country like Nigeria that is enmeshed in the most difficult recessions in the past 20 years.
However, the scheme has been criticised by many quarters in the media and financial regulatory authorities. On the 30th of August, the Securities and Exchange Commission, SEC (the government agency regulating the companies who create, market and sell financial products and securities) put out a disclaimer that MMM Nigeria is a Ponzi Scheme and that Nigerian should stay away from it. See the statement below:
The attention of the Securities and Exchange Commission, Nigeria (“SEC”) has been drawn to the activities of an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.mmm.net). The platform has embarked on an aggressive online media campaign to lure the investing public to participate in what it called “mutual aid financial network” with a monthly investment return of 30%
The Commission hereby notifies the investing public that the operation of this investment scheme has no tangible business model hence it’s a PONZI SCHEME where returns are paid from other people’s invested sum. Also, its operation is not registered by the Commission.
The general public is hereby advised to distance themselves from this online scheme. Please note that anyone that subscribe to this illegal activity does so at his/her own risk.
MMM has also has series of crisis and misfortunes across African countries. On 26th of September 2016, MMM Zimbabwe finally collapsed dashing the hopes of many members who have staked millions of Dollars (USD). EcoCash, the company that facilitated mobile money transfers amongst MMM Zimbabwe members washed it hands with an official statement that:
“We advise our valued customers and all stakeholders that Ecocash is a licensed mobile payment platform that enables customers to make financial transactions such as sending money, buying prepaid airtime as well as paying for goods and services within the confines of the law of Zimbabwe. EcoCash promotes safe and legal transactions but will not be held liable for any losses arising from the use of EcoCash to engage in illegal activities such as Ponzi schemes.”
However, MMM E.Africa, the admin in charge of MMM Zimbabwe denied that it crashed, the ‘company’ went on blasting journalists for spreading rumours through ‘copy and paste journalism’.
The scheme has also collapsed in South Africa earlier this year. Operators of the scheme are scrambling to restart it in South Africa, campaign heavily for members to come back into the scheme by investing freshly.
Many MMM Nigeria members are anxious that the scheme might collapse anytime soon. Since the news broke out that the scheme had collapsed in Zimbabwe, many members of MMM are asking several questions on Google Search engine, wanting to know when the scheme might crash in Nigeria.
