The Nigerian Deposit Insurance Corporation (NDIC) has revealed that about three million Nigerians have lost N18 billion (about $58million) to a Ponzi scheme popularly known as Mavrodi Mundial Movement (MMM).

NDIC’s Managing Director, Umaru Ibrahim, who was represented by the NDIC Deputy Director of Corporate Affairs, Hadi Suleiman, disclosed this at the ongoing 38th Kaduna International Trade Fair.

He said it is sad that despite frequent warnings by the Central Bank of Nigeria (CBN) and the corporation, Nigerians still patronize the scheme. “This phenomenon has been a source of concern because despite our repeated warnings over the years, some members of the public have continued to fall victims of their fraudulent practices,” Suleiman revealed.

According to him, the creation, usage or trading in the scheme in forms of virtual currencies as a medium of exchange, are Internet-based and are not authorized by the CBN due to the risks involved in their operations.

He noted that the scheme which began in 2015, is the result of illegal fund managers, known as ‘Wonder Banks’ which have continued to rob members of the public of their hard earned money.

“We would like to reiterate the fact that these fund managers are illegal as they are neither licenced by the CBN to take deposits from members of the public nor are those who patronize them covered by the NDIC deposit insurance scheme,” the official indicated.

Anita Fatunji