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Ciku Kimeria
Writer, Adventurer, Development Consultant, Travelblogger
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piqer: Ciku Kimeria
Tuesday, 17 April 2018

The Russian Conman Whose Death Means A Lot To Nigerians

The name Sergei Mavrodi may not mean much to most people, but to most Nigerians, Sergei and MMM are as recognizable as the name Bernie Madoff would be to Americans. This is because Mavrodi was the founder of the infamous Mavrodi Mundial Moneybox (MMM) Ponzi scheme that took Nigeria by storm in 2015. The effects of the losses are still being felt by many. 

It all dates back to November 2015 when MMM launched a website in Nigeria describing itself as a “mutual aid fund where ordinary people help each other”. It guaranteed returns of a whopping 30% per month on payments, and for a while it worked, so word spread quickly. Between February and July 2016, the number of people signed up to the Ponzi scheme grew from a few hundred thousand to over two million. 

MMM's arrival in Nigeria was quite timely. At the time the country was in the middle of the worst recession in 25 years and people were extremely desperate to find any way of making decent investment returns in an economy that had stagnated. 

Of course, as all Ponzi schemes, this one too collapsed leaving hundreds of thousands of Nigerians in despair. 

And then suddenly, in December 2016, MMM suspended its operations in Nigeria. Much to the consternation of many people who’d been hoping to withdraw funds to spend over the Christmas holidays, the company cited a “heavy workload on the system”, saying it was taking a short break and promised to return and be better.

But it never truly returned. 

Nigerians though, ever resilient, mostly counted their losses, turned even more to religion for comfort and some even invested in newer Ponzi schemes – likely believing that this time they would succeed. 

Mavrodi's death was therefore met with a bit of self-righteous schadenfreude and dark humor – with some believing that this was a rightful end to the life of a man whose actions had negatively impacted them. 

The Russian Conman Whose Death Means A Lot To Nigerians
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