INTRODUCTION
MMM became fully operational in Nigeria in 2016. It was embraced my Nigerians and seen as a quicker and easier way of making money. On this ground, it spread so fast like Hammathan fire within a very short time. It dominated the internet and was the talk of the day.
THE RISE OF MMM IN NIGERIA
If you look at the Nigeria today, there are so much confusion and frustrations. You see people living with expectations unmet. People are being compared by circumstances to work extra hard in order to make both ends meet. Yet, the majority cannot afford 3 square meals a day not to talk about other life essentials.
Governmental systems are obviously not doing enough to salvage the status quo. The common man is highly marginalized and disadvantaged in the allotment and distribution of the national cake. This makes the common man so helpless and sometimes, hopeless.
Of course, you know a man can get hungry to a stage whereby he would have no choice than accept anything that promises quick relief without minding the legitimacy of the source.
If you can remember, MMM Nigeria started at a time when economic recession was biting so hard on Nigerians. And because of how stressed the people were economically, their sense of rationale and financial discipline was largely deadened that they could not know their left, from their right. Even when the Central Bank of Nigeria(CBN), investors, previous records of failed MMM operations in other countries and religious bodies sounded warnings to all, Nigerians still fell victim.
Read also: Just take it easy!
Please permit me to say here that the Nigerian system is really very porous. Anything can enter and go out even in the presence of the many "Watchmen" we have in this country. I mean no harm, but that's the truth.
The founder of MMM, Sergei Mavrodi must have studied the economic helplessness of the Nigerian people, and the porosity in the system to take advantage of it.
WHAT PEOPLE DIDN'T KNOW ABOUT MMM
MMM came to Nigeria as a Ponzi scheme whereby, the operator paid returns to investors from the money invested into the scheme by new entrants, rather than from profits earned through legitimate investment of the monies paid into the scheme.At first, MMM looked real and legitimate to many people until the system couldn't keep up with their promises.
Read also: Unplug!
Frankly speaking, MMM had no legitimate business structure that generates profit from where they paid the high and quick returns to investors. They only paid returns to individual investors from the investment of new entrants.
MMM operated a pyramid form whereby more people are expected to enter having being attracted by the testimonies of old investors. When more people enter, the scheme is being sustained. But if it thus happens otherwise, the scheme crashes. That is what makes it a Ponzi scheme.
To make MMM look real, they painted the picture that the money paid goes directly into the account of the person you are providing help to and not into the founder's account.
The question I always asked those who were trying to talk me into it was that:
1- if the money does not go into the founder's account, then who is investing the money paid to generate enough profit from where they paid those high and quick returns?
2- even if the scheme has a way of boosting the figures to add 30% increase, how are this figures converted to cash that can be withdrawn from the bank by investors? And nobody could give me a convincing answer till today. It was all lies.
Read also: The Joy and sorrows of Yahoo Business
When MMM noticed that the system was headed for a crash, they increased the percentage returns paid to investors in order to attract more people. Meanwhile, they minimized their withdrawals and frozen their accounts for a long time just to trap them.
Whenever the number of people applying for withdrawals increased, they would restrain the withdrawal system. While they calculatively allowed some people to withdraw their returns so that people will see it that if some persons could withdraw, then the system is real. This was how they tricked, trapped and defrauded more people.
CATEGORIES OF PEOPLE AFFECTED BY MMM IN NIGERIA
MMM really caused more harm than good. Although, some persons(who probably were smart enough to understand the handwriting on the wall) benefitted from it. But a lot of people were left wounded almost irrecoverably.
These include but not limited to:
1- Those who invested all their life savings.
2- Those who invested borrowed money.
3- Those who encouraged their friends to invest and promised to refund their money in case the scheme crashed.
4- Students who invested their school fees
5- Those who sold both their personal, inherited and family properties and invested the money into MMM
6- Intending couples who invested their wedding money.
7- Parents who invested their children's school fees.
8- Tenants who invested their rents.
9- Contractors who invested contract money.
10- Business people who invested business money.
11- Those who developed hypertension and other diseases as a result of the loss.
12- Relationships and friendships that were broken.
13- Marriages that separated.
14- Those who committed suicide because of the tragedy.
Read also: You have a message!
WHAT WE HAVE TO LEARN
1- LESSONS FOR NIGERIANS: Resorting to quick fixes for a solution: Most times in life, shortcuts even make the journey longer. It makes you feel you have arrived and relaxed hence, even when you are still very far from reaching your destination.
Never be in a hurry to enter into open doors no matter how wide open they are and how long you might have been waiting. Some of those doors could be doors to your own prison and you wouldn't know until you've entered. When it looks appealing, think well before giving in. When it looks appalling, still think well before giving up. You can't be too hungry to the extent of eating your own tongue.
There are diverse business opportunities that you could do even with little capital and then grow gradually. It's all about having a clear-cut vision, setting great goals and taking small steps daily towards achieving them. The challenge is not actually economic recession, but mental retardation.
2- TO NIGERIA: One of the primary responsibilities of the government is to protect her people against all forms of harm including cymbal and financial harms. So, all the security and financial apparatus in the country need to be further fortified to ward off these financial vultures.
The shapelessness and porosity of the system have really made the Nigerian people more vulnerable. And I believe we've all learned our lessons.
Remain blessed!
TO GOD BE THE GLORY!
#emmanueleyafimoni
No comments:
Post a Comment