The Securities and Exchange Commission (SEC) has disclosed that Nigerians lost ₦300.2 billion to Ponzi schemes and fraudulent investment platforms in recent years. According to the commission, the figure excludes massive additional losses linked to unregistered schemes like CBEX, which alone cost Nigerians over ₦1.4 trillion.
The revelation was made by AbdulRasheed Dan-Abu, Head of the Fintech and Innovation Department at the SEC, during the 2025 Journalists Academy held in Abuja on Thursday. Dan-Abu explained that the figure was compiled after extensive investigations into Nigeria’s most notorious Ponzi and illegal investment schemes.
“The losses, drawn from investigations into some of the country’s most notorious Ponzi and illegal investment schemes, reveal the devastating financial and social impact of these operations on households and small investors,” he said.
Breakdown of the ₦300.2 Billion Ponzi Scheme Losses
According to SEC data, several fraudulent schemes were responsible for a significant portion of the reported losses:
- MMM Nigeria – ₦18 billion lost
- MBA Forex and Capital Investment Ltd – ₦213 billion lost
- Nospecto Oil and Gas – ₦45 billion lost
- Chinmark Group, Ovaioza Farm Produce Storage Business, and Famzhi Interbiz Ltd – Over ₦24 billion combined
These schemes collectively account for more than ₦300 billion, excluding the massive CBEX scandal and other unregistered online operations.
Actual Losses Could Be Much Higher
The SEC warned that the ₦300.2 billion figure only represents confirmed and reported cases, while many victims of smaller or online Ponzi schemes remain unaccounted for.
A source familiar with the investigation told The Nation that “the actual losses could be far more significant given the number of unreported cases and the proliferation of online schemes that evade regulatory scrutiny.”
The SEC noted that these fraudulent businesses often promised unsustainable and unrealistic returns, luring millions of Nigerians desperate for quick profits.
The Social and Economic Impact
The collapse of these schemes has left thousands of Nigerian households financially crippled, with many losing lifetime savings and investments.
Analysts warn that the widespread financial desperation, coupled with low investment literacy and weak enforcement, continues to fuel the rise of Ponzi operations in Nigeria.
The SEC has urged the public to verify the registration status of any investment platform before committing funds, emphasizing that legitimate investment opportunities must be registered and licensed by the commission.
SEC’s Ongoing Efforts to Curb Fraudulent Schemes
In response to the recurring threat of Ponzi operations, the SEC has:
- Increased public awareness campaigns about illegal investment schemes.
- Enhanced collaboration with law enforcement to investigate and prosecute operators.
- Strengthened fintech oversight to identify and shut down unlicensed digital investment platforms.
Dan-Abu reiterated that the Commission remains committed to protecting investors and ensuring the stability of Nigeria’s capital market.
The ₦300.2 billion loss underscores the massive scale of financial fraud in Nigeria’s investment ecosystem. With digital Ponzi schemes on the rise, experts warn that education, vigilance, and stronger regulation are crucial to protecting Nigerian investors from future exploitation.
