If you stand in the middle of the every-busy Lagos Island market and scream, “double your money in 10 days,” at least 100 people will turn to look. You can blame the economy, desperation, or our undying obsession with getting rich overnight, but the Ponzi scheme industry continues to thrive here, just like any other legitimate business would.
According to the Securities and Exchange Commission (SEC), Nigerians have lost a staggering ₦316 billion to Ponzi schemes and illegal investment outfits over the years.
That is not just numbers on paper. That is school fees, retirement savings, shop and house rent, life savings, and in many cases, family peace.
Ponzi schemes are not new here. They have evolved from grassroots contribution circles to fancy forex academies, and now sleek crypto platforms with influencer endorsements and glossy apps. Yet the mechanics remain the same: early investors are paid with money from new investors, until the system collapses, and it always does.
Here are the biggest Ponzi schemes that emptied Nigerian pockets and left many with lessons they wish they had never learnt.
1. MMM Nigeria — ₦18bn
If you were in Nigeria in 2016, you remember. You could not drink water and drop cup without hearing MMM. It spread its tentacles to universities, markets, estates, and even religious gatherings. The promised return was 30% per month, and the recruitment slogan was “Just register and bring two people.”
The Head of the FinTech and Innovation Department at the Commission, AbdulRasheed Dan-Abu, recalled how notorious schemes such as MMM Nigeria lured thousands with promises of 30% monthly returns. He said some victims even reinvested after the collapse.
“Even after MMM shut down, they came back and told people that if you pay a certain amount, you will get access to your lost money. People still paid. That shows you how greed blinds people,” he said.
2. Nospecto Oil & “Wonder Banks” — ₦106.9bn
Oil & Gas is presumably the biggest investment bait in Nigeria. Nospecto and other wonder banks did not just scam people; they also built an identity with corporate suits, church testimonies, branded envelopes, and oil trading returns.
Many of the recorded victims were retirees seeking a monthly income, while others were civil servants tired of waiting for pensions. SEC reports that these wonder banks made away with ₦106.9bn.
3. Unnamed Ongoing Case — ₦174bn+
SEC noted that there is a case still under investigation and is likely the largest single Ponzi scheme. Over ₦174 billion was lost in this Ponzi scheme, and it’s reportedly bigger than some bank collapses. Although the name has not yet been revealed, when it drops, people will find out.
4. Galaxy Transportation & Construction — ₦7bn+
Galaxy Transportation & Construction Services Limited was a confirmed Ponzi scheme that defrauded over 27,000 Nigerians of approximately ₦7 billion. The scheme crashed in 2018, and its CEO, Babagana Dalori, was arrested and prosecuted by the Economic and Financial Crimes Commission (EFCC).
Dalori promised "mouth-watering" and unsustainable returns on investment, initially offering 200% interest on deposits, which was later reduced to 135%. Such high returns with little to no risk are a classic red flag of a Ponzi scheme.
5. Bara Finance — ₦3.5bn
Bara Finance operated as an unlicensed investment platform, promising unusually high and consistent returns to investors, such as 15% for a six-month plan, 17% for one year, and 20% for two years.
Like typical Ponzi schemes, it used money from new investors to pay "returns" to earlier investors, rather than generating actual profits from genuine business activities, such as trading stocks or Forex, as it claimed. The scheme eventually collapsed, resulting in significant financial losses for investors, estimated at approximately N3.5 billion.
6. Famzi IntBiz — ₦2.5bn
The Famzi IntBiz Ponzi scheme was an investment fraud that unlawfully solicited funds from the public in Nigeria by promising high, guaranteed returns on investment (ROI).
The scheme had no legitimate underlying business activity and used money collected from new investors to pay supposed "returns" to earlier investors, a classic characteristic of a Ponzi scheme. The scheme resulted in substantial financial losses for investors, estimated at around N2.5 billion.
7. Dantata Success & Prof. Coy — ₦1.2bn – ₦2bn
The Dantata Success & Prof. Coy ponzi scheme was an unregistered and illegal investment operation that defrauded approximately 7,250 investors of between N1.2 billion and N2 billion by promising unusually high monthly returns of 25% to 50%.
Like other Ponzi schemes, the company used money from new investors to pay "returns" to earlier investors, creating the illusion of a profitable venture until it became unsustainable and collapsed.
8. Yuan Dong — ₦900m
The Yuan Dong (YDEC) scheme was a Ponzi scheme that promised investors high, short-term returns on a "Resources Investment Account". The scheme had no legitimate business operations and used money from new investors to pay earlier ones.
Like most Ponzi schemes, it paid early investors with money collected from newer investors, rather than from any genuine, profitable business activity. The scheme inevitably collapsed when the influx of new investors dried up. In February 2017, the SEC sealed the business premises of Yuan Dong and the promoters were arrested by the Nigeria Police Force.
9. G-Circle Investment — ₦400m
GCircle lured unsuspecting investors by promising high returns with little or no risk. The business model was a classic Ponzi/pyramid scheme, meaning that returns paid to initial investors came from the capital contributed by newer participants, rather than from actual profits made through legitimate investments.
G-Circle Investment was responsible for significant financial losses, with reports indicating individual losses of around N400 million each among other major schemes in Nigeria.
10. Box Value Trading — ₦400m
The company operated online, including through social media platforms like Telegram groups, to solicit funds from the public. Victims reported being promised high returns on investments, sometimes related to foreign exchange (forex) trading, but were scammed and lost their money.
The scheme eventually collapsed when it could no longer attract new investors to sustain the payouts, leading to significant financial losses for many victims. Individual losses associated with G-Circle Investment and Box Value Trading were estimated at around N400 million each.
11. Now-Now Alert — ₦235m
The Now-Now Alert was an illegal Ponzi scheme that defrauded Nigerian investors of approximately ₦235 million. The scheme, like other Ponzi operations, promised high and fast returns on investment with little to no risk, but generated these "returns" by using money from new investors to pay earlier ones, rather than from any legitimate business activity.
12. Cow Lane & Durrell Nigeria — ₦100m each
Nigerian investors reportedly lost approximately N100 million in each scheme. The name "Cow Lane" also refers to a physical location in Lagos where one such "wonder bank" (an informal, fraudulent bank) operated, defrauding residents.
These schemes collapsed when they could no longer attract enough new investors to sustain the payments to earlier ones, resulting in significant financial losses for those involved.
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