(EFCC) is dedicated to educating Nigerians about the detrimental effects of Pon

As part of its mandate to prevent economic and financial crimes, the Economic and Financial Crimes Commission (EFCC) is dedicated to educating Nigerians about the detrimental effects of Ponzi schemes on the economy.

During the 2025 Annual Management Retreat of the Nigeria Security and Civil Defence Corps held at Jubilee Hall, Holy Ghost Cathedral in Ogbete, Enugu State, the Acting Zonal Director of the EFCC, Assistant Commander Aisha Abubakar, urged citizens to reject Ponzi schemes, emphasizing how they have decimated lives, eroded trust, and hindered national development. Abubakar addressed participants on Friday, May 9, 2025, focusing on "Get-Rich-Quick Syndrome and Youth Vulnerability:

The Role of Law Enforcement in Prevention and Disruption." She noted that the pursuit of quick wealth has emerged as a significant economic and security challenge in Nigeria, particularly affecting the youth. She explained that the get-rich-quick mentality drives individuals to seek immediate financial gains without legitimate effort, often exacerbated by social media portrayals of overnight success and societal pressures. "Today, the craving for wealth among young Nigerians has become increasingly intense, rendering them more susceptible to financial scams like Ponzi schemes.

Many are lured into scams that promise quick returns despite lacking any legitimate business foundation. Driven by desperation to escape poverty and sustain small projects, they often engage in risky, unregulated investments," she remarked. Identifying the factors leading to the get-rich-quick mentality among the youth, Abubakar highlighted issues such as greed, financial illiteracy, peer and social pressure, exposure to digital technology, substance abuse, the fading of traditional values, a penchant for lavish lifestyles, mental health struggles, and impatience. These factors can lead individuals to invest in schemes "even when they have doubts about their legitimacy." She cited notorious instances of Ponzi schemes in Nigeria, including MMM Nigeria, MBA Forex, Chinmark Group, and CBEX. In April 2025, Nigeria faced one of its most devastating scams with the collapse of CBEX, a digital asset trading platform that operated as a Ponzi scheme. Investors were promised a 100% return on investment within 30 days, capitalizing on the excitement surrounding cryptocurrency trading and AI-driven strategies, she stated. Abubakar outlined various types of get-rich-quick schemes, which include advance fee fraud, bogus job and scholarship offers, online loan scams, and fake forex and cryptocurrency platforms. She underscored that cybercrime, a prominent aspect of these schemes, poses severe risks to Nigeria's economy. She expressed concern over how such activities have tarnished the nation's global reputation, deterring foreign investment and hindering overall economic growth. She warned that the reputational damage extends to individuals, eroding global confidence in Nigerians, both domestically and abroad. "Cybercrime has fostered an environment where fraudsters gain an unfair advantage and undermine legitimate businesses. A significant amount of funds lost to internet fraud often finances organized crime and terrorism, leading to further criminal acts and potential terrorist attacks. You will agree that this issue has adversely affected Nigeria's national defense and security, contributing to a decline in economic performance," she elaborated. Following this discussion, she reviewed the EFCC's efforts in combating these schemes. "Through roadshows, social media initiatives, and collaborations with youth-oriented organizations, the EFCC has been proactive in raising awareness about fraudulent investment schemes.

We collaborate with the Central Bank of Nigeria, the Securities and Exchange Commission, financial institutions, and international bodies like INTERPOL to trace funds, monitor financial transactions, and dismantle fraud networks," she explained. The Retreat, themed "Developing Leadership for a New Paradigm," was attended by 140 senior management members from various NSCDC formations throughout Enugu State.