MMM Nigeria: What Is Really Going On?

MMM Nigeria: What Is Really Going On?

By Ima Matthew | Sub Editor on February 12, 2018
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MMM Nigeria, financial pyramid, Sergei Mavrodi
The founder of the MMM financial pyramid, Sergei Mavrodi, leaves Matrosskaya Tishina prison on May 22, 2007 in Moscow, Russia. Mavrodi was the founder of a scheme that defrauded more than a million Russians of their life savings. | Getty Images

If you are Nigerian, chances are that you have probably heard of MMM Nigeria or even taken part in it. But how close have you been following it lately? Do you know what is happening to this colossal scheme? If you have yet to catch up, then let us fill you in on what has been going on with MMM Nigeria lately.

What is the idea behind MMM?

Unless you have been living under a rock for the past few years, you should be aware of how MMM operates. However, if you have no clue at all in terms of what it is or how it works, click to find out more about MMM in Nigeria.

In short, the whole system functions thanks to people’s contributions. Each member of MMM puts some money into the system, which they can then use to ‘donate’ money to other members. For their contributions to others and for putting their money into the system, users earn bonuses, the size of which depend on the amount they have contributed.

Additional way of getting more money through MMM is via sharing a ‘success story,’ which means recording a video claiming how much you have earned thanks to MMM. Such videos not only make their creators slightly richer, but also attract more people into the system, thus allowing it to exist.

Why is MMM still successful to this day?

Even though there have been plenty of negative MMM Nigeria news, people still believe in it. They disregard the long and dark history of this scheme, hoping that it is different from what has happened in Russia or other countries that suffered from MMM all those years ago.

But why do Nigerian people have such strong faith in MMM Nigeria? The main reason for it is that Nigerians have little to nothing else to believe in. They have lost their faith in the traditional ways of earning money and in their government long ago.

Ever since the recession hit Nigeria in 2016, more people decided to try their luck with alternative methods of earning money. That was why when MMM Nigeria came out with its 30% returns promise (which has soon grown to 100%), many people jumped on board without a second thought.

What boggles our minds is that, despite the almost-crash of MMM in 2016, when millions of accounts were frozen without prior warning, lots of people continue to invest their hard-earned money into MMM. Moreover, they encourage others to invest as well and repeat their mantra that ‘MMM pays.’ Nigerians still hope beyond hope that this iteration of MMM is not like the others that came before.

What is going on with MMM Nigeria these days?

Despite what we have said before, people are slowly losing faith in MMM Nigeria. Fewer and fewer people visit their official website, and the popularity of the whole enterprise has plummeted down over the past few months. Just a year ago, the website of MMM Nigeria was among the top 20 most visited webpages in the country. Today, it floats around top 300.

While it seemed to be doing fine just at the beginning of this summer, since then, MMM Nigeria has managed to suffer from two crashes — one around August and one around October. As a result of the most recent crash, MMM was reported to announce a ‘restart,’ which meant that lots of members would lose their money yet again. Unsurprisingly, MMM blamed the government and the media for their woes, but not too many people bought it.

To be fair, it has been hard to tell exactly what is going on with MMM Nigeria these days. It seems like every news outlet has their own opinion on the matter, which means that there are a lot of contradictory claims out there. At the same time, this supports Mavrodi’s favourite statement that ‘media lies’.

If we were to judge the situation only from the MMM’s website, we would say that it is somehow still doing fine. Even though the system has gone through a ‘restart’, people still post their testimonials and praises for the MMM, thanking it for their earnings. That said, the website of MMM Nigeria has always looked overly cheerful, so it is not all that reliable.

What is going to happen to MMM Nigeria?

Judging by the latest news about MMM Nigeria, people’s trust and patience are running short. Many have pulled out from the scheme long ago and even more continue to leave MMM each day. This leads us to believe that maybe the end of MMM Nigeria is much closer than we have anticipated.

Now, when it comes to predicting the exact time of MMM’s demise, it is hard to say for certain. All things considered, this Ponzi scheme has existed in various forms and countries for decades, and it is somehow still functional. However, even though the scheme as a concept has survived for many years, its separate iterations usually do not live long. This means that MMM Nigeria has about a year to live, two at best.

There are also different ways how MMM Nigeria might meet its demise. For instance, it might simply run out of people that are willing to participate in the scheme. Once it does, it will lose the ability to pay off the existing members, which will lead to the end of this scheme.

Alternatively, people might finally become smart enough and realise that the whole scheme is fake. This will result in them pulling out their money and giving MMM a bad reputation. However, taking into account that a large portion of funds has been frozen, there is no guarantee that they would be able to get even a fraction of their money back.

The third way MMM Nigeria might come to an end is when the government finally decides to destroy the scheme once and for all. Up to now, government officials have only been discouraging people from participation. Maybe if they somehow manage to prohibit the whole thing, it would finally go away.

No matter how you look at it, MMM Nigeria has no future. That said, it might still emerge victorious in the end, as a large portion of people’s money would still be in its possession even when it inevitably implodes. Therefore, if you have funds in MMM, pull them out as soon as you can, or you can kiss them goodbye. If, for some unknown reason, you are considering investing in MMM in 2018, don’t, please do not do it. Setting your money on fire would be much more satisfying.

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