By Emeka Ojukwu
Ponzi schemes are serious threats to the financial wellbeing of Nigerian investors. In recent years, billions of naira have been lost to unregulated and deceptive schemes that lure victims with unrealistic promises. This report explores the mechanics, risks, and societal impact of Ponzi schemes, while assuring investors of the safety, regulatory compliance, and expert guidance provided by GTI for building sustainable, long-term wealth.
Introduction
Ponzi schemes are fraudulent investment vehicles that use new investor capital to pay earlier investors. The model inevitably collapses, leaving the majority of investors with substantial losses. As the economy becomes more digitized, scams have evolved, leveraging social media and unregulated platforms to reach more victims.
According to the Economic and Financial Crimes Commission (EFCC), Nigerians lost over NGN 300 billion to such schemes in 2024 alone.
Case Studies of Recent Ponzi Schemes in Nigeria
| Scheme | Year | Estimated Loss |
| MMM Nigeria | 2016 | NGN 18 billion |
| MBA Forex | 2020 | NGN 100 billion+ |
| Chinmark Group | 2022 | Undisclosed |
| Oxford Group | 2023 | Ongoing |
| Baraza Multipurpose | 2024 | NGN 40 billion |
| CBEX Global | 2025 | Under investigation |
These cases demonstrate a consistent pattern of unsustainable promises, unlicensed operations, and investor losses.
Characteristics of Ponzi Schemes
- Promised fixed monthly returns exceeding market norms of 10%–20%
- No underlying business or vague model descriptions
- Not licenced or registered by SEC to run investments
- Use of aggressive marketing and referral systems
Figure 1: Lifecycle of a Ponzi Scheme
Root Causes of Investor Vulnerability
- Economic hardship and inflation
- Low financial literacy & Education
- Trust in authority figures or influencers
- Fear of missing out (FOMO)
- Lack of verification of legitimacy
Role of GTI as a Regulated Investment Partner
GTI is a licensed and regulated investment firm by the Securities and Exchange Commission (SEC), Nigeria. As a thought leader and expert advisor, GTI offers transparent, goal-based investment solutions tailored to the Nigerian investor.
Our Products:
- GTI Money Market Fund – Low-risk, daily liquidity; ideal for conservative and income-seeking investors.
- GTI Balanced Fund – Medium risk, combining fixed income and equities for steady growth.
- GTI Target Savings – Flexible interest-yielding savings for short-to-mid-term financial goals.
- GTI Treasury Bills – Government-backed short-term debt instruments with guaranteed returns.
- Purchase Stocks & Bonds (via GTI Securities Ltd): Buy, sell, and manage your investments in listed equities and fixed income through our licensed brokerage arm.
- GTI Managed Portfolios: Expertly managed investment portfolios tailored to different financial goals (growth, income, balanced)
- Kids & Adult Savings Accounts: Structured savings plans with attractive interest, built for financial discipline across age groups.
- The Nigeria Football Fund (TNFF): A unique mid-to-high-risk investment that enables investors to participate in Nigeria’s fast-growing football economy.
Our Services:
- Certified financial advisory
- Portfolio management & diversification strategies
- Wealth & retirement planning
- Market research & investment insights via GTI Research Portal
- Capital market access via GTI Trading Portal
- Digital access & investor support via www.gti.com.ng
Figure 2: Risk vs Return – Comparing Ponzi Schemes with Regulated Investment Options
Ponzi schemes promise higher returns than market rates, but they are illegal and unsustainable. Regulated investments like mutual funds, FGN bonds, and treasury bills offer moderate and realistic returns with investor protection and long-term value.
Recommendations for Investors
- Verify Regulatory Status: Use SEC Nigeria’s portal to confirm any investment firm.
- Understand Your Risk Appetite: Don’t chase returns without knowing your limits.
- Diversify Wisely: Avoid putting all your funds into a single product.
- Work with Licensed Advisors: GTI’s advisory team is trained and certified.
- Avoid Get-Rich-Quick Schemes: Real wealth takes time and strategy.
Conclusion
Ponzi schemes thrive on deception, desperation, and ignorance. The best defence is education and affiliation with regulated institutions. GTI remains committed to safeguarding investor interests and helping Nigerians build long-term, secure wealth.
For more information, visit www.gti.com.ng or speak with one of our certified advisors; Contact us: +234 912 669 4417 * +234 813 818 7152 * Email: gtiamt@gti.com.ng
Written By:
Emeka Ojukwu
Wealth Advisor & Digital Marketing Analyst,
GTI Investment Group
