99 Views

CBN Warns Nigerians Against MMM, Calls It “Wonder Bank”

cbns

The Central Bank of Nigeria (CBN) has warned Nigerians to be careful of any deposit money institution that is not insured by the Nigeria Deposit Insurance Corporation (NDIC) especially the trending MMM Nigeria community.

The bank through its the acting Director of Corporate Communications, Mr. Isaac Okoroafor, made this known yesterday against the proliferation of wonder banks in the country in recent times.

Okoroafor said such deposit money institutions were dubious present Ponzi schemes.

“At times like this when the economy has suffered some decline, Nigerians should 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 guise,” he advised.

He warned Nigerians to beware of the so-called wonder banks, explaining that they were makeshift institutions to dupe people.

“We can vouch for the banking system. The deposit money banks are the only licensed institutions to take deposits. If you need to deposit money in any form, go to any of the deposit money banks and put your money, you can buy fixed income instruments or invest in stocks,” he said.

Okoroafor said the CBN could not guarantee the unregistered institutions, insisting that when depositors lose money to them, the bank would not be able to help them.

“These people always come with very interesting propositions. These are fraudsters who are just out there to collect 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,” the CBN said.

He said the CBN was intensifying efforts and liaising with the various security agencies to identify the promoters of these schemes and have such persons arrested and prosecuted, adding that anyone caught with them would also be made to face the law.

Promoters of wonder banks and other pyramid schemes in the country are currently taking advantage of the rising level of unemployment as well as the shrinking disposable income to attract unsuspecting prey.

ALSO READ  Nigerians Brought President Buhari To Power, Not Me – Obasanjo

From Lagos to Port Harcourt and some other big cities in the country, owners of these illegal businesses have been offering Nigerians mouth-watering interest rates, which cannot be found in the banking system, in a bid to attract large number of customers before they run away with huge cash.

For instance, at the Ojuelegba area of Lagos, THISDAY was recently given a small handbill advertising investment schemes that offers 30 per cent returns in 30 days.

Also, there is a new Ponzi scheme called ‘MMM’ that is spreading like wildfire. A lot of young school leavers have already signed on to this scheme, which the promoters are marketing as a “mutual fund.”

“MMM offers its participants 30 per cent 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 that make up the MMM Nigeria community, that is me and you and other MMM Nigeria participants,” the promoters wrote in an online advertisement.

Typically, what promoters of such pyramid scheme do is that they offer rates far beyond what is obtainable in commercial banks. This would always attract a lot of people who would always rush in to stake their funds. But, those who join the scheme late would always be the ones to lose their shirts as they would have been convinced by those that joined earlier to invest huge amounts of money.

But experts have warned against falling for the bait of illegal deposit-taking institutions which are not licensed by the CBN, saying that their only intention is to defraud members of the public.

Recall that with the Nigerian economy is in recession, the National Bureau of Statistics (NBS) recently revealed that the country’s gross domestic product (GDP) contracted by 2.06 per cent in the second quarter of 2016, compared to the negative growth of 0.36 per cent recorded in the first quarter of 2016.

Also, national unemployment rate also rose to 13.3 per cent in the second quarter of 2016, from 12.1 in the first quarter of 2016.

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

Daughter Of The “Dancing Senator”, Adeleke And Davido’s Cousin Wows In New Pics
Politics
11 views
Politics
11 views

Daughter Of The “Dancing Senator”, Adeleke And Davido’s Cousin Wows In New Pics

MT - January 23, 2018

Nike is the beautiful daughter of Senator Ademola Adeleke ''the dancing senator'' who is Davido's uncle. She shared the new photos on the gram. See another below

This Year, I Will Invest In More Valuable Properties Rather Than In Expensive Bags – Danielle Okeke
Entertainment
18 views
Entertainment
18 views

This Year, I Will Invest In More Valuable Properties Rather Than In Expensive Bags – Danielle Okeke

MT - January 23, 2018

Nollywood actress Danielle Okeke says her new dawn in 2018, is to invest in more valuable properties rather than in expensive bags..... Hmmm Hope this aint no shade?…

PHOTOS: Couple Rock In Their Secondary School Uniform For Their Pre Wedding Photo Shot
Inspiring
19 views
Inspiring
19 views

PHOTOS: Couple Rock In Their Secondary School Uniform For Their Pre Wedding Photo Shot

MT - January 23, 2018

Below are beautiful photos of a couple who rocked their secondary school uniform for their photo-shoot, and it’s simply amazing!

Lovely Photos From Peter Okoye’s Daughter, Aliona 5th Birthday Party As Friends Join To Celebrate
Entertainment
19 views
Entertainment
19 views

Lovely Photos From Peter Okoye’s Daughter, Aliona 5th Birthday Party As Friends Join To Celebrate

MT - January 23, 2018

Peter Okoye's daughter, Aliona turned 5 on Monday, January 22, 2018, and she sure did have fun with her friends. The beautiful daughter and second child of…

How Pregnant Young Girls Between Ages Of 8 – 13 Years Are Causing A Scene In Calabar
Shocking
22 views
Shocking
22 views

How Pregnant Young Girls Between Ages Of 8 – 13 Years Are Causing A Scene In Calabar

MT - January 23, 2018

Images of girls between the ages of eight and 13 years with protruding stomachs, noticeably pregnant, are familiar sights in Calabar and other parts of Cross River…

That Mesmerizing Moment Davido Allows Female Fans Touch Him While On Stage (Video)
Entertainment
30 views
Entertainment
30 views

That Mesmerizing Moment Davido Allows Female Fans Touch Him While On Stage (Video)

MT - January 23, 2018

Fans and the way they adore and show love to celebrities when they meet each other… Davido is no stranger to such love and he took it…

Nigerian Women
21 views

OAP Toolz Visits Bakassi IDP Camp In Maiduguri (Video)

PH - January 23, 2018

The boiling Borno State capital, Maiduguri is one of the places in the north east that many dread to visit, especially if they do not have to…

L’Oreal Hijab Model Pulls Out Of Campaign After Backlash
Fashion
17 views
Fashion
17 views

L’Oreal Hijab Model Pulls Out Of Campaign After Backlash

PH - January 23, 2018

The model who was supposed to be the first woman in a hijab to be part of a mainstream advert for hair care has said she's pulling…

Cattle Colonies; Meet The Igbo Man Who Breeds Cows And See How He Does It. Photos
Business
24 views
Business
24 views

Cattle Colonies; Meet The Igbo Man Who Breeds Cows And See How He Does It. Photos

MT - January 23, 2018

Following the trending Fulani herdsmen issue which has been rocking the country for some time now, sixteen Nigerian states have agreed to establish cattle colonies proposed by…

4 Ways To Turn Down A Guy Without Sounding Offensive
Romance and Love
19 views
Romance and Love
19 views

4 Ways To Turn Down A Guy Without Sounding Offensive

PH - January 23, 2018

1. MY PAST STILL KEEPS ON HAUNTING ME  I am already committed. One of the most common ways to reject a guy’s proposal is this. This line…

Super Eagles Eye Quarterfinal Spot
Sports
19 views
Sports
19 views

Super Eagles Eye Quarterfinal Spot

PH - January 23, 2018

All is set for the home-based Super Eagles to progress to the quarterfinal of the African Nations Championship (CHAN) if they avoid defeat in their final group game against Equatorial Guinea.…

Another Boyfriend Rejects Marriage Proposal From Girlfriend (Photos, Video)
Romance and Love
32 views
Romance and Love
32 views

Another Boyfriend Rejects Marriage Proposal From Girlfriend (Photos, Video)

PH - January 23, 2018

Another girlfriend's has proposed to her boyfriend in Lagos, and the boyfriend said no. Dramatic proposal In a fresh clip that has just surfaced online on Monday,…

This Is Why It’s Important To Always Obey Traffic Light. See Photos
Shocking
26 views
Shocking
26 views

This Is Why It’s Important To Always Obey Traffic Light. See Photos

MT - January 23, 2018

The Rapid Response Squad has urged Nigerians especially Lagosians to obey traffic lights and stop endangering their lives because the consequences might be costly to bear. According…

These Might Be Why Your Child Has Lost Appetite
Food and Health
22 views
Food and Health
22 views

These Might Be Why Your Child Has Lost Appetite

PH - January 23, 2018

1. Slow Growth Rate: Changes in growth can cause an appetite slump in children. During the first year, children grow rapidly. But after the first birthday the…

Few Photos From Peter&Lola Okoye’s Daughter, Aliona’s 5th Birthday Party
Entertainment
18 views
Entertainment
18 views

Few Photos From Peter&Lola Okoye’s Daughter, Aliona’s 5th Birthday Party

PH - January 23, 2018

Peter Okoye and his wife, Lola Omotayo threw a birthday party for their daughter, Aliona, who just turned 5. All her cousins were in attendance to celebrate the…

Ooni of Ife Reveals Adam and Eve Were Black People Created in Ife
Art, History and Culture
26 views
Art, History and Culture
26 views

Ooni of Ife Reveals Adam and Eve Were Black People Created in Ife

PH - January 23, 2018

The Ooni of Ife Adeyeye Enitan Ogunwusi has shed light on the connection between the creation of humans and Yoruba people. Creation started at Ife, the Ooni said, and…

3 Things You Need To Get Right When Applying For 2018 UTME
Geeky & Smart
20 views
Geeky & Smart
20 views

3 Things You Need To Get Right When Applying For 2018 UTME

PH - January 23, 2018

2018 UTME is less than two month away and if you haven't register, you must ensure you get these three right in your registration. If you're seeking…

Diabetic Businessman Loses N190m To Herbalist Who Claimed To Have A Cure
Shocking
24 views
Shocking
24 views

Diabetic Businessman Loses N190m To Herbalist Who Claimed To Have A Cure

PH - January 23, 2018

A self-acclaimed herbalist, Adeniyi Adewunmi has been arraigned before an Igbosere Magistrates’ Court in Lagos for duping a diabetic businessman of N190million under the guise of finding…

Loading...