It then called on Nigerians to be wary of the investment model that originated from Russia. MMM involves directing clients to make money available for an anonymous person with a promise of 30 per cent return within a month.
Speaking in an interview with Saturday Vanguard, Chairman of the committee, Senator Rafiu Adebayo Ibrahim and other members of the committee alerted Nigerians to the dangers of investing in MMM.
“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 any where in the world,” he said.
For Senator Gbolahan Dada, APC, Ogun West, “It is unfortunate that some unscrupulous Nigerians are capitalizing on the 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.
Speaking about the financial implications of investing in MMM, Dada said, “The money involved in MMM are usually spent by the promoters on frivolities. The promoters engage in ostentatious lifestyles. They hardly have concern for the unsuspecting investors. It is fool hardy for any members of the public to fall prey to the scheme despite warnings from stakeholders. Those patronizing MMM will have a tale of woes to tell after losing their deposits.”