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Like Addyfi, Like 86FB – Why Nigerians Keep Falling Prey to Ponzi Schemes

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apps that pay you real money in Nigeria

Addyfi or AddyFx used to be a company owned by one Adams Uju who has since been at large and declared wanted for defrauding many Nigerians of their hard-earned monies.

Several other so-called financial institutions and investment companies have sprung up, defrauded unsuspecting Nigerians and closed shop.

It is however sad that Nigerians continue to victimized by these get-rich-quick schemes that promise heaven on earth but leave customers devastated.

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In this piece by Nairametrics’ William Ukpe, he did justice to the topic why Nigerians keep putting their monies in bad investments.

 

The recent crisis affecting gambling and investment service platform, 86FB has been a rude reminder to many Nigerians of the disadvantages of investing in Ponzi schemes and unverified investment platforms that promise higher than average mouth-watering yields.

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The activities of Ponzi scheme operators have been on the increase in Nigeria, especially in the last decade. Nigerians will not forget in a hurry, Mavrodi Mundial Movement (MMM) which is perhaps the most popular Ponzi scheme ever introduced into Nigeria. When the scheme finally crashed in 2016-2017, the CBN revealed that N12 billion was lost by investors.

Since MMM, several others have come in and repeated the same cycle with many more Nigerians falling victim to these scams. The list includes Dantata Success & Profitable Company, Ultimate cycler, MGB Global, Bitcoin Company, Money Rite, No Failure Development, and X-World, Imagine Global Holdings Company Limited, most of which have been shut down by the Securities and Exchange Commission (SEC).

 

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Nigerians have shown time and again that they have a high appetite for high-risk, high-return investment, regardless of the lack of a business model inherent in most of these schemes. Many are ever willing to rush into the next get-rich-quick-scheme.

Taking advantage of the country’s large population and woeful economic condition, Ponzi scheme founders are ever-ready to introduce their scam to Nigeria as quickly as possible.

Why do Nigerians still fall for Ponzi schemes?

Despite the SEC’s countless warnings to investing public against the activities of these unlicensed market operators and promoters of fraudulent schemes, many seem to continue to fall victim. It now seems as though the more of these schemes the SEC shuts down, many more spring up and scam more victims by promising them mouth-watering returns on their investments.

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Ken Odudu, a financial analyst told Nairametrics that the reason Nigerians keep investing in Ponzi schemes is due to a low amount of low-risk savings vehicles to hedge against inflation.

He said, “A big driver of the increased attraction towards Ponzi schemes arises from the limited availability of low-risk savings vehicles which deliver some protection against inflation.

Read: 86FB: Nigerians react to possible crash of investment platform, question ownership

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“Nigeria’s monetary policy has historically been financially repressive which has meant that the default bank account option of saving delivered negative real returns. In the two decades since Nigeria’s return to democracy, the number of times monetary policy sought to deliver real risk-free returns has been less than the periods dominated by negative real returns.

“Thus, with the official financial system delivering deeply negative real returns as the default saving option, the allure of Ponzi schemes under an atmosphere of low financial inclusion is significant. In addition, a low level of financial awareness/literacy also poses problems. Overall, limited options to save long term wealth in real terms in the official financial system provides a great incentive in luring many people towards Ponzi schemes.”

He warns that the regulators also have some blame as, due to weak surveillance frameworks outside the official financial system, they are always behind the curve in identifying the promoters of these schemes and clamping down on these entities until it is too late.

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Olumide Adesina, a financial analyst at Quantum Economics, says, unlike a legitimate business, Ponzi schemes boast outrageous returns and this is a major factor why many people will patronise them.

“Many people fall into this trap because they would rather invest their money and get double the return within a short period of time than work for it.

“Ponzi schemes are attractive because of the high returns they provide. Unfortunately, it’s usually presumptuous to believe in something that sounds too good to be true.

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“Any investment that promises you the moon deserves caution, especially those that use high-pressure sales tactics and lack any form of regulation, especially those that are not regulated by the SEC,” Adesina said.

In the last year, Ponzi schemes have witnessed an upsurge, prompting the SEC’s moves to clamp down on them. The SEC announced in February that it was working with the National Orientation Agency (NOA) and other government agencies to combat the operations of Ponzi schemes and illegal investment platforms.

We wait to feel the impact of the regulator’s hammer.

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FX

Dollar Stays Strong, Naira Falls Massively – See New Exchange Rate

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Naira to dollar rate

Naira has fallen massively with the dollar maintaining a strong position in the black market.

Techscoops reports that the Nigerian official currency, the naira has fallen massively against the United States dollar exchanging at N597/$1 weeks after a steady exchange rate of N588/$1

A survey conducted by financial experts at the Bureau De Change (BDC) market in Lagos, Nigeria’s commercial city, Tuesday afternoon, May 17, 2022, showed that the naira to usd exchanged at N597/$1, failing to maintain the N580 position of 1 dollar to naira it stood for weeks, months after USD to naira exchanged for N530/$1.

Naira to dollar falls massively at Aboki black market (parallel market)

Dollar to naira exchange rate for Tuesday, May 17 goes for [N593 to buy and N597 to sell].

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Dollar to Naira (USD to NGN)Black Market Exchange Rate Today
Buying Rate593
Selling Rate597

Dollar to Naira rate in Nigeria - Naija news now

Techscoops Nigeria reports that the players in the parallel market better known as the black market bought a dollar at N593 and sold for N597 on Tuesday afternoon, May 17, 2022.

The exchange rate between the naira to dollar and dollar to naira on Tuesday afternoon showed that the Nigerian official currency, the naira has fallen against the United States dollar months after a steady rise which saw it gain over N25 since it fell to its lowest of N575 to a dollar on September 20, 2021.

Meanwhile, Newsone Nigeria reports that this is coming months after the Central Bank of Nigeria (CBN) had on July 27, 2021, suspended foreign exchange (forex) sales to BDC operators and directed all those with a genuine need for forex to revert to banks. The naira lost value at a whooping N85 to the dollar in less than two months from N490/$1 to N575/$1 on September 20, 2021.

Even though the dollar to naira opened at the parallel market (black market) at ₦597 per $1, Techscoops reports that the Central Bank of Nigeria (CBN) does not recognise the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.

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Disclaimer: TECHSCOOPS NIGERIA does not set or determine forex rates. The official NAFEX rates are obtained from the website of the FMDQOTC. Parallel market rates (black market rates) are obtained from various sources including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.

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FX

Black Market Dollar To Naira Exchange Rate Today 17 May 2022

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aboki exchange rate today
facebook sharing buttonFind below, Dollar to Naira exchange rate for today, 17 May 2022, official and black market rates.

Techscoops has obtained the official dollar to the naira exchange rate in Nigeria today, including the Bureau De Change (BDC) rate and CBN rates.

What Is The Official Exchange Rate For Dollar To Naira Today?

The exchange rate between the Naira and the US dollar at the official forex market showed that the Naira opened at  ₦415.8832 per dollar on Tuesday, May 17, 2022, after closing at ₦415.6642 per $1 Monday, May 16, 2022.

 

Exchange Rate of Dollar To Naira in The Parallel Market [black market]

Dollar to Naira (USD to NGN)Black Market Exchange Rate Today
Buying Rate593
Selling Rate597

Techscoops Nigeria reports that on the black market, the players buy a dollar for N593 and sell for N597 on Tuesday, May 17, 2022, after they bought N590 and sold for N595 on Monday, May 16, 2022.

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Meanwhile, Techscoops reports that the USD started this week at ₦595 in Parallel Market also known as Black Market on Monday, May 16, 2022, in Lagos Nigeria, after it opened at 588 last week Monday, May 9, 2022.

Dollar To Naira Exchange Rate For Today 17 May 2022 [Official Rate]

Even though the dollar opened in the parallel market for ₦597 per $1 today, the CBN does not recognise the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.

“The only exchange rate remains the I&E window, which is the market we expect everybody who wishes to procure or sell forex to get it,” said the CBN Governor, Godwin Emefiele.

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“I am sorry to say that I do not, and I do not intend to recognise any FX in the market.

“Go to your bank. Even if your limit is above what the bank is selling, put it forward, and we will look into it. If you want to sell the dollar, go to your bank and sell it,” he said during a press briefing on September 17, 2021.

Checks by Techscoops online reveal uncertainty in the market as prices move up and down in a directionless manner, thereby making it unreliable.

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Disclaimer: Techscoops does not set or determine forex rates. The official NAFEX rates are obtained from the website of the FMDQOTC. Parallel market rates are obtained from various sources, including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.

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FX

Aboki Dollar To Naira Exchange Rate Today, May 15

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aboki exchange rate today

What is 1$ to naira in black market?

Dollar to Naira Black Market rate – Here is the current USD to Naira rate today. See CBN & black market exchange rate for dollar to naira aboki fx. You change your USD to naira at these rate or convert dollar to naira at the latest black market rate or parallel market.

Many Nigerians prefer to exchange their foreign currencies especially the US Dollars to naira using the black market because the exchange rate is very high compared to what the bank offers. If you want to know the current black market rate, here is the page to find that.

Aboki fx dollar to naira exchange rate has also been added here so you can easily verify each of the rate for the currencies you want to exchange in the parallel markets. Aboki fx is the most trusted source for black market dollar to naira rate today. You can find their exchange rate for today here.

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How much is $100 dollar in Nigeria now?

Dollar to Naira (USD to NGN)Black Market Exchange Rate Today
Buying Rate58000
Selling Rate58500

What is the current dollar to naira exchange rate in parallel market? Well, it may interest you to know that Dollar to Naira rate in the black market sometimes varies hugely from the rate in Central Bank of Nigeria website (www.cbn.gov.ng).

The price listed above is the current USD to Naira exchange rate. We will always update the latest rate on a daily basis to keep you informed. Dollar to Naira Exchange Rate is the current exchange equivalent of the United States Dollar. Rate varies for various banks and parallel markets.

How much is $1000 in naira today?

Use the calculation of $100 to check this 585000

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How much is 1 Dollar in Naira presently?

Parallel exchange rate (black market) exchange rate is always different from CBN rate. Currently, Naira is trading at 573 Naira Per Dollar. The Nigerian Economy is drastically affected by the Dollar to Naira exchange rate.

As Naira is falling, inflation takes over the economy which usually affects the citizens. Central Bank Governor, Godwin Emefiele has said that the Nigerian Economy needs a massive turnaround and has urged Nigerians to work towards it.

The black market commonly referred to as Aboki market rate for dollars is usually higher than the exchange rate at the banks which is usually regulated by the Central Bank of Nigeria (CBN). The CBN Exchange rate is the rate you can buy or sell dollars for naira listed on CBN dollar to naira website cbn.gov.ng.

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Dollar to Naira bank rate is the rate you use when purchasing something from foreign websites using your Naira Mastercard or Debit card from Nigerian Banks. These rate normally would always be lower than what is obtainable in the black market.

What’s your Opinion on Dollar to Naira Black Market Exchange Rate Today, let us know what you think and how the Government can work with the CBN to provide reasonable USD to naira rates in the future.

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