The basic function of government is to protect their citizens against imaginable scams from bad elements. In the mist of the present near economic collapse of Nigeria due to years of bad leadership, wanton looting of the treasury at all levels of government, and sharp drop in oil price, ordinary Nigerians are looking for a quick way to survive and make the best out of the little they have. Out of the current misery and the survival instinct of Nigerians, a Ponzi scheme named MMM introduced into the country by some unscrupulous Nigerians have further compounded the hopelessness of their fellow citizens. MMM is a short name for Mavrodi Mondial Moneybox. It is a catchy name with the sole purpose of drawing in unsuspecting and naïve Nigerians. This scheme originated in Russia years ago.
MMM promises Nigerians 30 percent return on their monthly contributions. For example, if you contribute 500,000 Naira in a month, you will receive 150,000 Naira monthly return. So, the original contribution from contributors are used to pay the 30 percent return to prior contributors. So, whenever there is shortage of new contributors, the whole operation will come to a halt since there will not be enough cash-flow to keep the scheme going. This is exactly what happened when MMM organizers suspended their operation on December 13, 2016. The owner or owners of this fraudulent scheme is promising to resume operation in January 2017. Nigerians who contributed to this Ponzi scheme should not bet on the owner or owners promises. Their money is gone for good. One pastor Mbanefo is denying that he is the owner of the Ponzi scheme and he claims to be just another participant even though he registered the domain name.
It does not matter who owns the Ponzi scheme or who set it up. The most appalling aspect of the MMM saga is that neither the federal government or any state government did anything to put a stop to the scheme before it became what it is today. No responsible government around the world will allow any type of Ponzi scheme to operate freely in their country. The federal government, not the state government has the ultimate responsibility to stop or ban it since it is not limited to one state. I heard some members of the House of Representative and the some Senators call MMM, a Ponzi scheme, yet they did not present any legislation to ban it neither did president Buhari. Ordinary Nigerians may think that the scheme is genuine since it appeared to be legal because no government agency or official did anything to stop or ban it altogether. This is a typical example of a failure of leadership. If this Ponzi scheme was outlawed and any Nigerian chooses to secretly engages in it, then they will have only themselves to blame.
Nigeria is a country in economic crises and the present government are not doing what they can to prevent unnecessary suffering by Nigerians. Nigerian government failed Nigerians by not keeping them safe from predators which has exacerbated their economic misery. It is a shame. Yes, the contributors to the MMM Ponzi scheme bears some responsibility but the federal government should have at least tried to ban this particular scheme or any other type of Ponzi scheme before it turns into a monster.