The central bank of Nigeria (CBN) has warned Nigerians not to deposit money in any financial institution that is not protected by the Nigeria Deposit Insurance Corporation (NDIC).
The bank through its the acting Director of corporate Communications, Mr. Isaac Okoroafor, warned particularly on the trending Mavrodi Mondai Movement (MMM) Nigeria community.
Okoroafor said: “At times like this when the economy has suffered some decline; Nigerians ought to be very careful with those they deal with. Any institution that is not licensed by the CBN to accept deposits should not be given money to keep under any pretext.
“We can vouch for the banking industry. The deposit money banks are the only licensed institutions to take deposits. If you would like to deposit money in any form, visit any of the deposit money banks and put your money, you can purchase fixed income instruments or invest in stocks.
“These people always come with very fascinating propositions. These are fraudsters who are simply out there to gather people’s money and run away as soon as they hit their target. There is no insurance because the NDIC does not even protect them against such risks when they occur”.
“There is a new Ponzi scheme known as ‘MMM’ that is spreading like wildfire. Lots of young school leavers have already signed on to the present scheme, which the promoters are selling as a “mutual fund””
“MMM provide its participants 30% growth rate per month for each and every donation they make into the system… MMM belongs to the community, its sustainability depends on the activities of the people who make up the MMM Nigeria community, that is me and you and other MMM Nigeria participants,”
Typically, what marketers of such pyramid scheme do is that they provide rates far beyond what is available in commercial banks. This would always attract a lot of people who would always rush in to stake their funds. But, people who join the scheme late would always be the ones to lose their shirts as they would have been convinced by people who joined earlier to invest large amounts of money.