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The Economic and Financial Crimes Commission (EFCC) has renewed its call for Nigerians, particularly the youth, to steer clear of Ponzi schemes, describing them as destructive to lives, the economy, and national security.

Delivering a keynote address at the 2025 Annual Management Retreat of the Nigeria Security and Civil Defence Corps (NSCDC) in Enugu on Friday, May 9, the Acting Zonal Director of the EFCC Enugu Zonal Directorate, Assistant Commander of the EFCC (ACE I), Aisha Abubakar, warned that Ponzi schemes continue to undermine public trust and economic stability.

Speaking on the topic, “Get-Rich-Quick Syndrome and the Youth Vulnerability: The Case Study of Ponzi Scheme—The Role of Law Enforcement in Prevention and Disruption”, Abubakar highlighted the pervasive “get-rich-quick” mindset as a major driver of youth involvement in fraudulent investment ventures.

“In Nigeria today, the aspiration for wealth has grown increasingly urgent among the youth, leading to vulnerability to financial frauds such as Ponzi schemes,” Abubakar said. “They often fall victim to enticing schemes that offer double returns within short timeframes, despite the absence of legitimate business operations.”

She attributed this vulnerability to a mix of factors including greed, financial illiteracy, social and peer pressure, digital exposure, and the erosion of societal and family values. Other causes, she noted, include drug use, depression, frustration with traditional systems, and psychological manipulation.

Citing notorious examples of Ponzi schemes that have rocked Nigeria in recent years—such as MMM Nigeria, MBA Forex, Chinmark Group, and the recently collapsed CBEX platform—Abubakar stressed the devastating economic and emotional toll such scams have on individuals and the nation. She referenced the April 2025 collapse of CBEX, a digital asset trading outfit promising 100% returns within 30 days using supposed AI-driven cryptocurrency strategies.

“The desperation to escape poverty and fund small projects pushes many into high-risk, unregulated investments,” she said, warning that many victims often ignore red flags in pursuit of unrealistic returns.

Abubakar also warned about the broader implications of get-rich-quick schemes, which include cybercrime activities such as advance fee fraud, fake job and scholarship offers, bogus online loans, and fake cryptocurrency platforms. These crimes, she noted, not only damage Nigeria’s international reputation but also repel foreign investment and empower organized criminal groups.

“Cybercrime has created a market system where fraudsters obtain competitive advantage and drive out legitimate business. A lot of funds are lost to internet fraud, some of which are eventually used to fund organized crime and terrorism,” she said. “This has contributed to negative output in the economy and weakened our national defence.”

Highlighting EFCC’s ongoing prevention efforts, Abubakar said the Commission employs a multi-pronged strategy involving roadshows, social media sensitization, and collaboration with institutions such as the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and international partners like INTERPOL. These efforts aim to trace illicit financial flows and dismantle fraudulent networks.

The NSCDC retreat, themed “Developing Leadership for a New Paradigm,” brought together 140 senior management staff from various NSCDC formations in Enugu State. The retreat emphasized collaborative strategies among law enforcement agencies in tackling the growing threat posed by financial crimes and economic sabotage.

The EFCC’s call adds urgency to national efforts to combat financial fraud, with a growing focus on youth education, inter-agency cooperation, and the cultivation of ethical financial behavior across the country.

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