"Stop Investing In MMM" - CBN Warns Nigerians Again

The Central Bank of Nigeria (CBN) has once again cautioned the citizenry against investing in the ponzi scheme, Mavrodi Mundial Moneybox (MMM).

The scheme operators stopped the accounts of its investors in Nigeria few days ago.CBN Director of Development Finance Dr. Mudashiru Olaitan gave the warning at a business leaders’ conference with the theme: “Prospering in a recession”, organised by EZ37 Solutions in Ibadan.

He called on Nigerians to be careful in investing their resources, especially at this period of economic recession.

According to him, the nation is blessed with many resources and businesses that could bring returns at minimal risks, urging people to embrace agriculture instead.

Olaitan, who was represented by the Head of CBN Development Office in Ibadan, Mr. Banji Akinola, said the Ponzi scheme has become a national embarrassment with the scheme’s operators insulting the Nigerian government just because it cautioned the people over the scheme.

A university don from the Department of Economics, Obafemi Awolowo University, Ile Ife, Prof. Funmi Soetan, who spoke on the theme of the conference, advised companies to consider cutting the cost of production through waste elimination rather than laying-off workers.

According to her, Nigerian economy is passing through a difficult phase of the business cycle.

Factors responsible, she said, include Nigeria’s overdependence on oil revenue, the adverse impact of the increase in global crude oil supply, fall in global oil prices, slow and declining growth in China, the BRICs and Europe, rising global and local terrorism and its attendant insecurity in Nigeria.

Other factors listed by Prof. Soetan include corruption and poor management of Nigeria’s oil revenue, the decline in external reserves and CBN devaluation of the Naira.

An associate professor at the Nigerian Institute of Social and Economic Research (NISER), Mr. Femi Ogundele, stated that the immediate consequence of recession was that businesses might cut employees, which translate to more work being done by fewer people.

The Chief Executive Officer of EZ37, Adaora Ayoade, stated that the effects of recession on the business community were challenging, urging firms to engage the situation in an informed, constructive and pragmatic manner.