MMM Nigeria has gained popularity among Nigerians as the programme promises a monthly payment of 30 per cent interest on loans provided by participants. Usually, participants are expected to provide loans for a minimum of N20, 000 to get a 30 percent interest within 30 days. The system operates on two platforms which is Provide Help (PH) and Get Help (GH).
How MMM Nigeria works
If a participant requests to Provide Help of N20, 000 today, he/she is expected to be matched within the next 14days with another participant or participants, and after payment, the donor gets back a full repayment of his loan (N20,000) and 30 percent (N6,000) within the next 15 days. This implies that the donor gets N26,000 from another participant or other participants after 30days.
Other financial benefits
However, aside the 30 percent interest on loan, other financial benefits participants gain from MMM Nigeria include a Referral Bonus of +10% from a contribution amount made by each member (referral) you invited to the System.
The Bonus is paid and available for withdrawal as soon as the referral has provided help and got his Mavro confirmed. For example, if a referral provides help of N20,000, the participant who refers him or her will get a N2,000 bonus. Also, there is Guider’s Bonus comprising of four levels in MMM Nigeria – +5%, 3%, 1% and 0,25%. You may take this bonus out two weeks after your referral has provided help and got his Mavro confirmed. It works like Referral Bonus.
Guider’s bonus is paid only for ‘new’ money. There is also bonus for Testimonial video. Bonus for the video in a “Letter of happiness” is 5 per cent of the amount of received help. After receiving help you have to send a “Letter of happiness”. If you attach a video to it, you will get a bonus. The bonus is credited for each “Letter of happiness”.
No Impact on Nigerian Banks—–Bankers
A banker, Folashade Amosu said “MMM Nigeria does not have any impact on the banks because it does not involve withdrawal of money from banks but transfer of money from one bank account to another. Also, the amount of money involved per person is usually small, mostly N1 million and below, hence it has little or no impact on the bank. In his own contribution, Michael Ilifo, who is also a banker, said, “MMM is not an organisation, it does not have staff. It is a computer application that matches people who need financial assistance to people willing to provide financial assistance.
The money goes from one individual bank account to another individual bank account. Money does not leave the banking industry, so there is no impact. I think the problem is that people criticise what they have not taken time to study and understand. MMM is not a ponzi scheme but a pyramid scheme.
Dr. Uju Ogubunka, President, Bank Customers Association of Nigeria (BCAN) however argued that “MMM is a faceless scheme, so I advise people to be careful in their dealings with it because there will be nobody to complain to if anything goes wrong.”
A bombshell that will crash——Capital market operators
Jimmy Okugere of Quantum Securities Limited, said some brokers who have joined MMM Nigeria community were guided by greed. He said, “they are cautious though, even some have told me to also join, but I dismissed it because personally, I have to understand the risk I am taking and I must make sure that I balance it up. For me, I won’t do any business that I can’t explain the source of funding.
Where is the 30 per cent growth coming from; because I took money from one place and I gave help to one person and another person gave help to me. That is a bombshell that will crash one day; it will blow and when it blows, it is going to be deadly. Not after several experiences we have had in the past in the days of wonder banks.
For most of my colleagues who are doing it, well sorry; they are taking a risk.” Paul Uzum, another stockbroker, said it is true that some investors recently started selling their shares in order to invest in MMM.
He said that even educated and financially literate people are equally taking the plunge. According to him, “Their argument is that, they have at some point lost money in shares and they do not mind losing money.
They see it as financial game where some will gain, while others will lose. Because of the fact that some of them are financially savvy, they feel that give and take they will still make money. I have some friends in academia who are even doing it. It is so shocking. For most, they know that MMM is a zero-sum gamer wherein the gain of some people is loss for some people.
Investors should be wise—–Senators
Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Rafiu Adebayo Ibrahim in his reaction warned Nigerians to be careful in their engagement with the MMM, saying that it is a pyramid that would soon burst. He said “any Financial institutions of any kind that is not under the regulation of a Regulator such as MMM is a pyramid that will soon burst.
We engaged the CBN and they have issued a statement in the recent past. So Nigeria should be wise and know that there is no free money anywhere. One wonders which investment can yield 30% flat anywhere in the world.”
Also reacting, a member of the Senate Committee on Banking, Insurance and other Financial Institutions, Senator Gbolahan Dada, APC, Ogun West said, “It is important for members of the Public to know this fact. ??? was a Russian company founded in 1989. The company was established by Sergei Mavrodi, his brother named Vyacheslav Mavrodi, and Olga Melnikova.
The name of the company was taken from the first letters of the three founders’ surnames. MMM could be called a wonder bank. Over 5 to 40 million people lost up to $10billion in the 90s when it was introduced. The company was shut down by Russian Police in 1994 and declared bankruptcy in 1997.
“It is unfortunate that some unscrupulous Nigerians are capitalizing on current economic hardships to defraud unsuspecting Nigerians by encouraging them to part with their hard earned money with mouth-watering interest or returns. MMM does not contribute or add value to the economy because the records of such transactions are not kept and not made open to the public or regulatory authorities. It is a product of fraud and nothing good comes from fraud.