MMM:30 DAYS AFTER JAN. 14TH.
Somewhere in Kenya now, a young man is trying to convince his dear friend to join the latest brilliant investment scheme in town -MMM. He does this with good intentions, giving every detail as he believes them to be true. He testifies of the benefits he has reaped within the short time of being an investor. He tells his friend that one does not only get return on investments, but also reward for making referrals and bringing people into the scheme.
A loyal friend is bound to listen. If the friend tries to trade on the path of caution, every skepticism is laid to rest immediately. The international reputation of the scheme is dismissed as a propaganda and misinformation. He clarifies that the initiators of the Scheme were jailed because the government was jealous of the magnanimous amount they were raking in. And when they could not find anything to incriminate them for, they held them for tax evasion.
He would further explain that indeed the scheme experienced a hitch in Zimbabwe for some reasons. First, because the Scheme was offering a 100% return and overtime that proved to be unsustainable. And again, the Scheme operated a central account then. But now, funds are dispersed in accounts of customers. He assures that the scheme has improved upon these pitfalls and therefore forestalled against another collapse.
He further extolled the Scheme's success in Nigeria and how the initiators took a time out because of an anticipated massive withdrawals by customers during the Christmas season. He would narrate that the scheme survived propaganda by the Nigerian government and faithful investors remained loyal despite the panic the government tried to create. He would assure his friend that despite all the panic, the scheme is still working and people are still exchanging funds.
At best, the MMM scheme is an investment pool where investors throw in money, and scoop out money thrown in by another. The funds accumulated before the Dec 14th brief time-out is one pool. People believed that by its Jan 14th resumption the cycle will continue, as they would begin to scoop from the pool and continue to throw in funds as well.
But as things turned out upon the come-back, participants have been restricted from accessing funds from last year's pool but are encouraged to invest more funds. Pointing to the fact that the investors are trying to build up a new pool. Without recourse to funds accrued from the past year. This leaves customers with the devils choice - invest more funds and stand in line to recover your past investments or cut your losses and lose all your rewards left unreaped.
Participants used to brag that the MMM scheme was better than Banks. That is laughable. It is like comparing sleep with death. True, Banks do not promise quick returns. But Banks are registered and highly regulated. Every bank has a capitalization fund of billions of naira with the CBN. In the event of a collapse, customers can recover their deposit from the capitalization fund. It may take time, but with patience and persistence, no one loses their dime. This is an undisputable difference.
The huge success of MMM has proved that Nigeria is a landmine to tap investment funds. You would be shocked if any statistics can (accurately) give us the total amount that was exchanged in the Scheme. If only those monies were channelled through a regulated mutual fund. The scheme advised people to use their spare money. If billions of naira were rolled in and out of the scheme, that shows that Nigerians have billions of naira as spare money . (Of course not everyone used their spare money. Some people used their school fees, some that of their children. Some used their house rent. And some others dipped their fingers into funds they manage but do not own).Businessmen, entrepreneurs, investors, etc, can cash in on this. Instead of waiting on banks to approve loans, investors can sort their fund among the people around them. MMM investors chatted up every Dick, Tom and Harry as they were soliciting for referrals. Businessmen and Enterpreneurs can do the same. And promise their investors returns with the certainty that their business plan is feasible, attainable and can generate profit. I believe it takes less rigor to convince your family, friends, co-workers of your business plan than convincing Bank executives while attempting to obtain a loan.
The MMM scheme revealed another(sad) reality. We are more comfortable getting help and pledging help to total strangers under the umbrella of a faceless, structureless, unregistered, unregulated international organization. While we are less comfortable pledging help or getting help from people around us. May be we do not trust ourselves. May be we do not trust that people around us would lend a helping hand. May be we do not trust that people we offer help(credit) would repay us back as at when due. So we choose to trust strangers instead. The Dec. 14th incident has proved to us that strangers are not so beautiful either.
Even worse is that you have nobody to call Police for. But if it is someone you know, you can raise hell, embarrass them, call the Police and somehow your money will be recovered.
Most people while testing the waters in the MMM scheme, invested smaller amounts in the range of 20-50,000 naira. Imagine how your garri-seller customer in the market would feel if you decide to test the waters by offering to invest between 20-50,000 naira in their petty business. In short, the garri-seller would call down the host of heaven to bless you. He/she would pay you back every penny with the agreed interest(if any) as soon as they can. Of course, this would not reap as much yield as MMM's 30%,but you have earned something more precious than money.
Some people invested as much as One million naira, just imagine offering (lending) that money to an entrepreneur with a feasible business plan.
I cannot say MMM participants should wake up and smell the coffin,I will not. Faith and hope is a beautiful thing. Maybe, they can still recover all, just maybe. On March 14th, I will inquire if they have been on the shore long enough to see that the ship has sailed. 
A loyal friend is bound to listen. If the friend tries to trade on the path of caution, every skepticism is laid to rest immediately. The international reputation of the scheme is dismissed as a propaganda and misinformation. He clarifies that the initiators of the Scheme were jailed because the government was jealous of the magnanimous amount they were raking in. And when they could not find anything to incriminate them for, they held them for tax evasion.
He would further explain that indeed the scheme experienced a hitch in Zimbabwe for some reasons. First, because the Scheme was offering a 100% return and overtime that proved to be unsustainable. And again, the Scheme operated a central account then. But now, funds are dispersed in accounts of customers. He assures that the scheme has improved upon these pitfalls and therefore forestalled against another collapse.
He further extolled the Scheme's success in Nigeria and how the initiators took a time out because of an anticipated massive withdrawals by customers during the Christmas season. He would narrate that the scheme survived propaganda by the Nigerian government and faithful investors remained loyal despite the panic the government tried to create. He would assure his friend that despite all the panic, the scheme is still working and people are still exchanging funds.
At best, the MMM scheme is an investment pool where investors throw in money, and scoop out money thrown in by another. The funds accumulated before the Dec 14th brief time-out is one pool. People believed that by its Jan 14th resumption the cycle will continue, as they would begin to scoop from the pool and continue to throw in funds as well.
But as things turned out upon the come-back, participants have been restricted from accessing funds from last year's pool but are encouraged to invest more funds. Pointing to the fact that the investors are trying to build up a new pool. Without recourse to funds accrued from the past year. This leaves customers with the devils choice - invest more funds and stand in line to recover your past investments or cut your losses and lose all your rewards left unreaped.
Participants used to brag that the MMM scheme was better than Banks. That is laughable. It is like comparing sleep with death. True, Banks do not promise quick returns. But Banks are registered and highly regulated. Every bank has a capitalization fund of billions of naira with the CBN. In the event of a collapse, customers can recover their deposit from the capitalization fund. It may take time, but with patience and persistence, no one loses their dime. This is an undisputable difference.
The huge success of MMM has proved that Nigeria is a landmine to tap investment funds. You would be shocked if any statistics can (accurately) give us the total amount that was exchanged in the Scheme. If only those monies were channelled through a regulated mutual fund. The scheme advised people to use their spare money. If billions of naira were rolled in and out of the scheme, that shows that Nigerians have billions of naira as spare money . (Of course not everyone used their spare money. Some people used their school fees, some that of their children. Some used their house rent. And some others dipped their fingers into funds they manage but do not own).Businessmen, entrepreneurs, investors, etc, can cash in on this. Instead of waiting on banks to approve loans, investors can sort their fund among the people around them. MMM investors chatted up every Dick, Tom and Harry as they were soliciting for referrals. Businessmen and Enterpreneurs can do the same. And promise their investors returns with the certainty that their business plan is feasible, attainable and can generate profit. I believe it takes less rigor to convince your family, friends, co-workers of your business plan than convincing Bank executives while attempting to obtain a loan.
The MMM scheme revealed another(sad) reality. We are more comfortable getting help and pledging help to total strangers under the umbrella of a faceless, structureless, unregistered, unregulated international organization. While we are less comfortable pledging help or getting help from people around us. May be we do not trust ourselves. May be we do not trust that people around us would lend a helping hand. May be we do not trust that people we offer help(credit) would repay us back as at when due. So we choose to trust strangers instead. The Dec. 14th incident has proved to us that strangers are not so beautiful either.
Even worse is that you have nobody to call Police for. But if it is someone you know, you can raise hell, embarrass them, call the Police and somehow your money will be recovered.
Most people while testing the waters in the MMM scheme, invested smaller amounts in the range of 20-50,000 naira. Imagine how your garri-seller customer in the market would feel if you decide to test the waters by offering to invest between 20-50,000 naira in their petty business. In short, the garri-seller would call down the host of heaven to bless you. He/she would pay you back every penny with the agreed interest(if any) as soon as they can. Of course, this would not reap as much yield as MMM's 30%,but you have earned something more precious than money.
Some people invested as much as One million naira, just imagine offering (lending) that money to an entrepreneur with a feasible business plan.
I cannot say MMM participants should wake up and smell the coffin,I will not. Faith and hope is a beautiful thing. Maybe, they can still recover all, just maybe. On March 14th, I will inquire if they have been on the shore long enough to see that the ship has sailed.
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