Nigerian MMM investors in panic mode as January 14 approaches

Many Nigerian who are members of the global Ponzi scheme – Mavrodi Mondial Moneybox, otherwise known as MMM, are worried of what is ahead of them even as Saturday, January 14, the date set by the scheme founders to lift the current ban placed on deposits  approaches.

Business247 News Online gathered that many are afraid that the new likely policy to be rolled out by the scheme operators may be unfavourable to them while others hold the view that the ban may not be lifted, insisting that similar thing had happened in the 1990s when the original MMM collapsed leading to loss of about $10 billion by more than five million people.

Speaking with a university lecturer and an Associate Professor of Economics at the University of Lagos, Akoka, Dr. Femi Saibu, he suggested that the likely panic actions of the participants, if eventually the embargo is lifted, may put some banks in liquidity stress.

The Economist, however, added that unfreezing the depositors’ accounts may not have much effect on the overall banking operation.

An Information Communication Technology expert, who craved anonymity, told Business247 News Online that he was sure the scheme would reopen for active operation as promised by the founder.

But he does not think the new policy that may be rolled out will be beneficial to members. He said it was unfortunate that the embargo was placed on withdrawals from the account at a time he needed the scheme most, saying his prayer was that the embargo be lifted so that he can take all his money from the scheme.

He said: “I don’t want to believe I am a fool, but I was truly hit below the belt by the scheme. I had actually made some money before the decision, but it happened at a time I took the bigger risk. I never saw it coming so soon, and so all I can wish is for it to come back so that I can take my money and settle my debts.

“I don’t want to believe that when it reopens, Nigerians will not participate again. The enrolment may only drop. This is because as long as there is greed among people, and as long as Nigeria’s economy continues to wobble, people will look for means like this to survive.”

Asked whether he would still take part in the scheme, he said he had not made up his mind, and that the accompanying events would determine his next move.

Another Nigerian participant and trader, who also craved anonymity, said she was ready to take the risk again if the scheme is reopened, but that if she is able to recoup her principal, she would only be willing to run the scheme with the interests already made.

She said the freezing of the account had created a lot of problems for many Nigerian participants, citing the case of a security official attached to a new generation bank in Ikotun area of Lagos, who she noted had cajoled his mother, a daily contribution collector, and used the customers’ deposits for MMM shortly before the scheme went on ‘pause mode.’ She narrated:

“I know the security guy. He took the mother’s contributions and saved it in MMM. Shortly after, the scheme went on pause mode. The customers didn’t know this, but when they swooped on the old woman in December, she could not bear the pressure. She first passed out, before she eventually died in December at a hospital. There are other similar cases. So, it will be terrible if the scheme does not come back.”

Also speaking with this medium, a physician with the Ladoke Akintola University of Technology in Osogbo, Osun State, Dr. ‘Lekan Bello, who is also a participant, said he had initially resisted the temptation to participate, but that since he knew no penny was directly getting to the hand of the founder, he decided to do it just for the fun of it.

Bello said though he was initially shocked when the account was frozen, he has since forgotten about the issue, but that he was aware many participants are currently unstable mentally and that their conditions may aggravate if the scheme fails to become operational again.

“I am just getting to know of a worker who invested N18 million meant for December salary of his company. Though, I learnt he is currently being held in police custody, what do you think will become of such a man? Similar cases may increase the figure of patients at our mental clinics across the country,” the doctor said.