The house of representatives has vowed to investigate the Monrodi Moneybox (MMM) scheme in a bid to “save Nigerians from falling prey to fraudsters”.
The rate of Nigerians investing in the MMM scheme has been on the rise in the last three months.
The resolution of the house to investigate the scheme was sequel to a motion sponsored by Saheed Fijabi.
While moving the motion, Fijabi noted that the scheme was set up by three Russian nationals in 1989.
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He said clients were made to invest monies with the hope to make 30 percent interest in 30 days.
Fijabi said the scheme had no legal backing.
“The scheme’s structure and operations indicate otherwise as their clients can have multi-level structures under them and receive bonus (in percentage) from each financial transaction of every participant in their structures,” the legislator told the house.
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“It is worthy of note that the government of China banned the operations of MMM on the ground that it was a payment pyramid scheme without registration in the country and has the capacity to cause financial havoc in the system.”
He said that the scheme capitalised on the high level of unemployment and poverty in the country.
On his part, Leo Ogor, minority leader of the house, said it was not possible to invest one naira in a business and get back one hundred naira as profit.
“This whole thing is a scam. The Central Bank should warn the public to avoid falling victim of it. There is no where in the world somebody will invest one naira in a business and get back one hundred naira as profit,” he said.
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The house mandated its committees on banking and currency to investigate the scheme and report back for further legislative action.
The house adopted the motion after it was put to a voice vote, with the “ayes” having it.
8 comments
“Report back for legislative action” smh. I believe MMM is structured to crash, such systems don’t exceed one year. But that being said I also believe it’s people’s business what they do with their money. So the senate should work on the very serious pending bills like PIB and let people breathe
I don’t know if it is mandatory to register any system that deals with finances under the Government. But people in the House should be open hearted. On a matter like this, Instead of Hon Shared condemning the whole issue saying “there is nowhere in the world where you invest with one naira and profit 100 naira” is that a sincere statement? Are they reaping 100% profit on MMM talk less of 1000% he is saying or what’s the percentage of one naira into 100 profit he is saying. Its an overstatement and should not have come from a national leader like him. It’s even a display of aggression.b If you people have a means of contacting the house or the members, they should be positive,what they should do is to summon the admins of the MMM if they have the interest of the masses,seeks explanation from them how they do it. Then make them sign an agreement form that will assure Nigerians that this thing not crash. Then if necessary they should make them register it. But in this case when they are not being positive. Only God knows. But if they have to ban it,then they should ban all the lottery house,the Baba ijebus and even the National Lottery. Thanks.
PONZI SCHEME IN ANOTHER DISGUISE !!! I AM SURPRISED ABOUT THE NOISE FROM THE NA ON MMM. THERE ARE SO MANY OF THESE ‘MIRACLE BUSINESSES’ IN NIGERIA AT THE MOMENT, WHY THE SPECIFIC ATTENTION TO MMM?
THERE SHOULD BE SERIOUS ATTENTION AND ACTION FROM THE FG TO DETER THESE DUBIOUS BUSINESS MEN FROM TAKING ADVANTAGE OF POOR, WEAK, TRAUMATISED, GULLIBLE, IGNORANT, DESPERATE AND GREEDY NIGERIANS. MMM, SWISS GOLD, FOREX ETC ARE ALL A FORM PONZI SCHEME IN DIFFERENT HATS! PEOPLE ARE BORROWING, SELLING PROPERTY, MORTGAGING THE FUTURE OF THEIR FAMILIES, LYING & STEALING JUST SO THEY CAN INVEST IN ANY ONE OF THESE FRAUDULENT SCHEMES TO MAKE QUICK AND HUMONGUOUS PROFITS. THE RESULT IS THAT MILLIONS OF PEOPLE END UP BEING DEFRAUDED FOR THE BENEFIT OF A FEW! BASICALLY IT IS DEFRAUDING YOUR FRIENDS AND FAMILIY TO GIVE TO YOU AND THEN AGAIN DEFRAUDING YOUR FRIENDS / FAMILIES’ FRIENDS / FAMILIES TO GIVE TO THEM. A VICIOUS AND RANCOUR PROMOTING CIRCLE. MADDOF IS ALIVE AND IN PRISON, A VERY RECENT OPERATOR OF A VERY SUCCESSFUL PONZI SCHEME. THE CRASH OF THAT PARTICULAR BIZ DID A LOT DAMAGE TO THE PEOPLE, PSYCH AND ECONOMY OF AMERICA AND BY EXTENSION THE REST OF THE WORLD. WE ALL NEED HELP EDUCATE OURSELVES AND THE FG SHOULD DO MORE TO GET RID OF THESE MERCHANTS OF PAIN FROM NIGERIA.
From all indications, the house of reps doesn’t understand what they are condemning. From my research on how this MMM thing works, participants don’t pay a dime to the system. They pay directly to other participants’ bank account. My question to the house of reps is: How will the MMM system defraud Nigerians when nobody pays or saves any money to the MMM system itself?
Think about this.what if just 10 of those ‘participants’ accounts are actually MMM accounts with the names of individuals and they direct people to ‘give help’ to those
accounts. will the people giving help know that they are paying into MMM accounts and not individual accounts?
Its amusing how Nigerians have fallen for this cheap scam. Has anyone asked how the 30% interest and other bonus incentives are generated on this scheme??Since the scheme doesn’t have a business running as a backbone which legitimately generates some form of profit, it means it would go on till a point where those requesting help will outnumber those offering help on the scheme.Its noteworthy to state that at every point there is approximately 40% deficit of the total monetary value of investment in the scheme that is being bankrolled by new investments on the scheme.December and January which are periods when people require liquidity would be a good time to assess how well the scheme handles the expected large volume of payouts. The government just needs to give directives to all internet operators in Nigeria to block the site and associated proxy’s and VPN with network filters et all. That way everyone involved would have to relocate to other countries to continue or just count some blessings for monies made.
Its pitiful that Nigerians have sunk so low to fall for this cheap scam.Ask your guiders on this scheme how the scheme makes money and they don’t know and are not bothered.The best you would hear is “from site traffic”.Since this scheme is bereft of a credible form of business that makes profit as it’s backbone,it will not be there for too long.Ask yourself where the 30% interest ,registration and other downline bonuses comes from.What you have is a constant deficit of approximately 40% of the the total monetary value of the investment on the scheme.This deficit is being bankrolled by new investments in the scheme however it will get to a point where participants requesting help (get help) would outnumber participants offering to give help.A time when the number exiting the scheme before they are burnt will outnumber those joining or rolling over their investment.December and January are times people want to be liquid,lets see how the scheme survives it.The government if its serious to end this scheme can issue and ultimatum to internet providers to block this site,other sister sites, proxy’s and vpn on their networks, thereby preventing access from the nigerian airspace.Let those who have EARS listen.Cashout NOW if you haven’t.You won’t be notified when it goes down.
Hopefully people can recoup the money that they lost eventually.