Yudala, an e-commerce firm, has said that ponzi schemes are thriving in the country due to depression.
In a statement signed by the Head, Corporate Communications, Yudala, Mr Gideon Ayogu in Lagos on Wednesday, the company said that the schemes were thriving in spite of their clear and present dangers.
Ayogu said that largely unheralded for a long time, ponzi schemes came to the consciousness of the entire nation in 2016.
“With the descent of the Nigerian economy into its first full depression in over two decades, many embraced the rise of these money-spinning schemes as a way out.
“With tough economic climate, Nigeria fell into its full recession in 29 years at the turn of last year.
“With job losses in various sectors and inflation rising to double digit figures, many distraught Nigerians were in desperate search of a lifeline.
“In came all manner of ponzi schemes promising incredulous returns on investments.
“At the height of its fame, Mavrodi Mundial Movement (MMM), one of the most popular, had over three million Nigerians on its subscriber list.
“Despite the crash of this and many others that came after it, many are still succumbing to the lure of ponzi schemes,” Yudala said.
He said that through Yudala’s Research/Development Unit, the Yudala x-rayed scheme and found out that its ”mouth watering and quick returns” made it remain popular in spite of risks involved.
The e-commerce firm said that in its hey-day, MMM offered Nigerians huge interests on their investment as much as 30 per cent within a period of 30 days.
According to the company, an investment of N100, 000 is bound to earn the investor about N130, 000 in addition to other bonuses that will reportedly accrue.
“Same template was followed by the tonnes of other ponzi schemes that followed; each looking to out-do the other in the terms offered.
“In the view of many, not even the banks or other financial institutions can match such returns,” it said.