The Economic and Financial Crimes Commission (EFCC) has urged Nigerians to steer clear of Ponzi schemes, warning that they destroy lives, erode public trust, and undermine national development.
Acting Zonal Director of the EFCC’s Enugu Zonal Directorate, Assistant Commander of the EFCC (ACE I), Aisha Abubakar, issued the warning during the 2025 Annual Management Retreat of the Nigeria Security and Civil Defence Corps (NSCDC), held at Jubilee Hall, Holy Ghost Cathedral, Ogbete, Enugu State.
Abubakar, who spoke on the topic “Get-Rich-Quick Syndrome and Youth Vulnerability: A Case Study of Ponzi Schemes – The Role of Law Enforcement in Prevention and Disruption”, described the get-rich-quick mentality as a major economic and security threat in Nigeria, particularly among young people.
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She explained that the get-rich-quick syndrome reflects a mindset driven by the desire to attain wealth without legitimate, sustained effort—a mindset increasingly fuelled by social media portrayals of instant success and societal pressure.
“In Nigeria today, the obsession with wealth has intensified among the youth, making them susceptible to financial frauds such as Ponzi schemes. Many are lured by promises of double returns within short timeframes, despite the absence of any credible business model,” she stated.
Abubakar noted that desperation to escape poverty or fund small projects often drives many young Nigerians into high-risk, unregulated investment ventures.
She identified several root causes of the syndrome, including greed, financial illiteracy, peer pressure, digital exposure, substance abuse, the erosion of societal values, depression, frustration with traditional systems, and psychological instability.
“Notable examples in Nigeria include MMM Nigeria, MBA Forex, Chinmark Group, and CBEX. In April 2025, the country witnessed one of its most devastating financial scams with the collapse of CBEX, a digital asset trading platform.
“It operated as a Ponzi scheme, promising investors a 100% return within 30 days by exploiting the hype around cryptocurrency trading and artificial intelligence,” she said.
Abubakar highlighted several common get-rich-quick frauds, including advance fee scams, fake job and scholarship offers, online loan and grant fraud, and bogus forex and cryptocurrency platforms.
She also pointed to cybercrime as a significant outgrowth of the get-rich-quick mentality, lamenting its damaging effects on Nigeria’s international reputation and economic growth.
“Cybercrime has tarnished Nigeria’s image globally, discouraged foreign investment, and affected our economy as a whole. The stigma also affects individual Nigerians, who face suspicion both at home and abroad,” she said.
“Fraudsters now dominate market systems, outcompeting legitimate businesses. Billions are lost to internet scams, some of which finance organised crime and terrorism. This not only fuels further insecurity but also undermines national defence,” she added.
Abubakar went on to outline the EFCC’s efforts to disrupt such fraudulent activities.
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“Through roadshows, social media campaigns, and collaborations with youth-focused institutions, the EFCC has raised awareness about fraudulent investment schemes.
“We also work closely with the Central Bank of Nigeria, the Securities and Exchange Commission, commercial banks, and international bodies such as INTERPOL to trace illicit funds, monitor financial flows, and dismantle scam networks,” she said.
