Despite years of warnings and previous financial disasters, many Nigerians have once again lost money to a suspected Ponzi scheme. This time, the platform at the centre of the controversy is known as PXES, an online investment scheme that reportedly attracted thousands of participants with promises of unusually high returns. According to reports, the platform stopped paying investors in early September, leaving many unable to access their funds.
The collapse has triggered anger among investors, with reports indicating that some aggrieved participants stormed PXES offices in parts of Adamawa and Kogi states after failing to recover their money. Many victims reportedly invested amounts ranging from a few thousand naira to several millions. The latest incident has revived memories of previous schemes that wiped out the savings of countless Nigerians, most famously MMM.
Financial experts say Ponzi schemes continue to thrive because they exploit a combination of economic hardship, greed, desperation and financial illiteracy; research has shown Nigerians have lost hundreds of billions of naira to such schemes over the past decade. The Securities and Exchange Commission has repeatedly warned that investments promising unusually high returns with little or no risk should be treated with suspicion; the regulator notes that Ponzi schemes typically pay early investors with money collected from newer participants until the system eventually collapses.
For many victims, the losses go beyond money - some invest school fees, business capital, retirement savings and funds borrowed from friends or family. Experts advise Nigerians to verify whether an investment company is properly registered and regulated before committing their money. Source: yaroinsider.ng
