The house of representatives has vowed to investigate the Monrodi Moneybox (MMM) scheme in a bid to “save Nigerians from falling prey to fraudsters”.
The rate of Nigerians investing in the MMM scheme has been on the rise in the last three months.
The resolution of the house to investigate the scheme was sequel to a motion sponsored by Saheed Fijabi.
While moving the motion, Fijabi noted that the scheme was set up by three Russian nationals in 1989.
He said clients were made to invest monies with the hope to make 30 percent interest in 30 days.
Fijabi said the scheme had no legal backing.
“The scheme’s structure and operations indicate otherwise as their clients can have multi-level structures under them and receive bonus (in percentage) from each financial transaction of every participant in their structures,” the legislator told the house.
“It is worthy of note that the government of China banned the operations of MMM on the ground that it was a payment pyramid scheme without registration in the country and has the capacity to cause financial havoc in the system.”
He said that the scheme capitalised on the high level of unemployment and poverty in the country.
On his part, Leo Ogor, minority leader of the house, said it was not possible to invest one naira in a business and get back one hundred naira as profit.
“This whole thing is a scam. The Central Bank should warn the public to avoid falling victim of it. There is no where in the world somebody will invest one naira in a business and get back one hundred naira as profit,” he said.
The house mandated its committees on banking and currency to investigate the scheme and report back for further legislative action.
The house adopted the motion after it was put to a voice vote, with the “ayes” having it.