To Investigate or not to investigate? Many have wondered if government will one day investigate MMM.
However, the rampaging influence of MMM has warranted a call for security agencies to investigate its activities.
Members of the House of Representatives have called on law enforcement agencies to investigate MMM, the digital Ponzi Scheme with “questionable” credibility.
The lower chamber also mandated its committees on banking and currency and financial crimes to investigate the scheme.
MMM has become popular in Nigeria as many have resorted to the scheme that promises 30 per cent interest on investment per month as a means of escaping poverty. Moreso, those behind the scheme are unrecognised by Nigerian regulatory agencies, including the Central Bank and the Nigerian Deposit Insurance Corporation.
The scheme has been criticized 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.
The development followed a motion of urgent national importance raised by Akinlade Fijabi from Oyo State, who described MMM as a ‘Rob Peter to Pay Paul Scheme’.
Mr. Fijabi said the operators of MMM are exploiting the economic situation of Nigerians that had left them desperate for income through any means without considering the implications.
Another lawmaker from Ondo State, Bode Ayorinde, said lawmakers should be concerned because they will likely be inundated with petitions if the scheme goes burst.
“When the business goes burst, it is the same House that people will flood with petitions,” Mr. Ayorinde said.
An Enugu lawmaker, Dennis Amadi, said the House should save Nigerians from themselves, because the collapse of MMM could make many commit suicide.
“The House will not wait until these crooks defraud Nigerians of billions of naira or until people start committing suicide,” Mr. Amadi said.
Speaker Yakubu Dogara ruled that the motion was adopted and urged the committee to expedite its investigation and report back to House within four weeks.