Business
Crash of BbhTV raises concern over attraction of risky ventures
By Tumininu Ojelabi Hassan
For over three decades, many Nigerians have fallen victims to the tricks of dubious money-doubling platforms, popularly known as Ponzi schemes. Ponzi Scheme, named after Charles Ponzi, an italian fraudster, who duped thousands of investors in 1919 is a fraudulent investment program, which involved using payments collected from new investors to pay off the earlier investors.
The founders of Ponzi schemes usually promise to invest the money they collect to generate lucrative profits with little or no risk involved. It is a deceptive investment scheme, where investors are promised substantial returns on investment (ROI) within a short duration.
Many Nigerians succumb to these dubious investment schemes in order to survive the economic hardship. Some call it “Wonder Bank”, others call it “pyramid investments” also known as “everybody come inside”.
Last week, the BbhTV, an online investment platform created by unknown persons announced that all its accounts had been frozen. Many unsuspecting Nigerians, who are currently battling economic crisis have become victims of this platform, which claims to be a once in a lifetime opportunity for everyone, who wants to make money online.
This would go down in history as the second biggest investment fraud in Nigeria after the MMM Ponzi Scheme, which crashed in 2016.
Findings revealed that over 2.7 million Nigerians lost billions of naira to BbhTV, following its announcement to the victims (who it called employees) that the Federal Inland Revenue Service (FIRS) has frozen its accounts over issues of payment of Personal Income Tax. According to the unknown founders, the total money in the frozen accounts amounts to N89.4 billion.
Victims of BbhTV, who were referred to as employees were required to carry out about five daily tasks (watching videos), which earned them N500 daily. To make more money, the ‘employees’ needed to deposit money in any of the investment plans to get a percentage daily. The minimum investment amount was N15,000 with a daily profit of N500 while the maximum amount was N96 million with a daily profit of N12 million.
One of the victims, Rev. Dr. Peter Ejemurua, who also convinced over 800 members of his church to join the platform, said it seemed like a legitimate job platform. He claimed he was innocent while lamenting that he also lost greatly to the Ponzi scheme.
“It is so unfortunate that this has happened. My name is being slandered, when I’m innocent. We saw that this job looked legit and I introduced my family and church members and paid for them, so we all could benefit. As I was withdrawing, I did my best to upgrade them and myself.
In fact, I just upgraded to P8 with the money I had left before this whole thing happened. I have read all the insults and backlashes coming from people and I take them in good faith. I have lost greatly but I know the wicked will not go free. I am a Servant of God and I have been in ministry for over 50 years. Soon, I will be 80 and will always stand for the truth,” he said.
Another victim of BbhTV, Emmanuel, who shared his ordeal while speaking with our correspondent, said he lost over N700,000 to the investment scam excluding the money his family and friends had invested in it.
“When I joined the platform, I thought it was a genuine online job platform. At the beginning, I was getting paid. Then I started investing, along the line I persuaded my family and friends to join the platform not knowing it was a Ponzi scheme. The money I lost is over N700,000 while my family and friends lost over N3 million. I am still in shock, I can’t even face my family and friends right now because I led them to this. I thought I was helping them but I didn’t know I was causing more damage to their lives,” he said.
Another victim of the investment scam, Olamide Sogbamu, who lost N300,000 said it was her first time of getting involved in an online investment scheme and she regretted joining the platform.
“This was my first time of joining any online investment platform. Initially, I thought it was an opportunity to make extra money online through the tasks not knowing the plan was to scam us. I have had sleepless nights since the withdrawal issue happened, I can’t believe my N300,000 is gone just like that,” she sobbed.
An Economist, Seye Adedokun described Nigerians, who fall prey to Ponzi schemes as gullible and greedy people. According to him, when a return on an investment is significantly high, it is a major red flag.
“It is only greedy and gullible people that fall prey to Ponzi schemes. Why would anyone offer you a 40% ROI in a month and you will fall for it? The founders of Ponzi schemes are thriving on the gullibility of some selfish Nigerians. The major red flag is when the returns are too good to be true. When you ask these people, they can’t explain the dynamics of the investment scheme because they do not understand how it works. This is why financial literacy is very important. In a bid to make more money, don’t lose the little you have,” he said.
Alhaji AbdulAzeez Akanji, opined that Nigerians should be contented while emphasizing that making money through dubious ways was against God’s will.
“I always advise our members against joining any Ponzi scheme platform. At the beginning, it is usually smooth but it always end in sorrow. When MMM crashed, one of our members almost committed suicide because he deposited over N1 million into it and was expecting a return of N3 million before it crashed. A lot of people lost their hard earned money. Making money through devious means is against God’s wish. Parents let’s teach our children to be contented with what we give them,” he warned.
Pastor David Olayemi urged Nigerians against engaging in Ponzi scheme, saying it is not a sustainable way of creating wealth, instead its victims end up in a financial crisis.
“I always say this, Ponzi scheme is not the right way to create wealth, it is a path to destruction. What they do is rob Peter to pay Paul. Slow and steady wins the race. Any platform promising you a ridiculously high profit on your investment is not godly platform, you shouldn’t invest your money in such a platform. You should flee! I understand that the economy is quite tough, however this shouldn’t make one desperate and greedy because at the end of the day, it puts you in a worse financial situation. It is the blessings of the Lord that makes rich and he adds no sorrow with it,” he said.
In 2021, 422,305 Nigerians lost N1 billion to Racksterli, an investment platform owned by Micheal Chidiebere Oti. Racksterli promised its investors 46 to 58 percent ROI in one month, depending on the investment package. The packages were Standard, Diamond, Ruby, Platinum, Emerald, and so on. The capital invested was within the range of N14,000 to N20 million.
In addition, Nigerians have lost billions of Naira to other fraudulent investment schemes in the past years. Voltac Global Capital, a finance and management company defrauded its investors of N1.8 billion. Benignant Forte Nigeria Limited, an investment firm located in Abuja failed to refund investors’ N10 billion after its crash. Many Nigerians also lost N2 billion to Ultimate Cycler, a popular Ponzi scheme in 2016. Similarly, thousands of investors lost N1.93 billion to Pennywise in 2007.
Aside investing in Ponzi schemes, Nigerians, who have invested in Forex trading company like Wales Kingdom Capital were duped of N40 billion.
Likewise, MBA Capital and Trading Limited duped 12,476 Nigerians of N213 billion and the founder, Maxwell Chizi Odum was declared wanted by the Economic and Financial Crimes Commission (EFCC) in August 2023,
“The general public is hereby notified that Maxwell Chizi Odum, A.K.A Mba Trading and Capital Investment Limited is wanted by the Economic and Financial Crimes Commission, EFCC in an alleged case of #conspiracy #obtainingbyfalsepretence and #moneylaundering to the tune of N213 billion
“The suspect is a native of Ikwere in Obio-akpor Local Government Area of Rivers State and his last known address is at 7, Odum Street, Elekahia, Port Harcourt, Rivers State.
“Anyone with useful information as to his whereabouts should please contact the EFCC in its Benin, Kaduna, Ibadan, Sokoto, Gombe, Maiduguri, Makurdi, Ilorin, Enugu, Kano, Lagos, Port Harcourt, Abuja and Uyo offices or through these lines: 09-9044751-3, 08093322644, 08183322644, 070-26350721-3, 070-6350724-5; or its email address: [email protected] or the nearest Police Station and other security agencies,” the statement re
Micheal Oladele, the director of Bank examination department, at Nigeria Deposit Insurance Company (NDIC) revealed that Nigerians have lost at least N911.45 billion to numerous Ponzi schemes and related fraud across the country in the past 23 years.
A report by the Norrenberger Financial Investments Scheme stated that as of 2022, Nigerians had lost over N300bn to Ponzi schemes in five years.
Nigeria’s Ponzi Scheme history can be traced back to the 1980s and early 1990s, when the famous Umana-Umana investment platform in Port harcourt and Calabar, Planwell, and Owolabi’s Forum Mortgage Bank took the market unaware. These schemes operated through enticing investors with a promise of high ROIs within a specific period, but their mode of operation was to pay old investors with the deposit of new investors.
Recall that in 2016, many Nigerians lost billions of Naira to Mavrodi Mundial Movement (MMM), an investment scam, which promised investors a 30% return on the amount they invested. According to the NDIC, over three million Nigerians lost N18 billion to MMM.
Despite the tragic outcome of Umana Umana, Forum Mortage Bank, Planwell, MMM investment schemes, Nigerians still unbelievably fall prey to Ponzi schemes.
