Why Do People Keep Falling for Ponzi Schemes?

I didn’t fully understand what CBEX was about—until it crashed.

Maybe it’s because I’m neither into crypto nor betting. But when I took time to read and understand how it worked, I saw the red flag clearly: you earn a bonus by inviting others to join. Classic Ponzi energy.

But the real question is: why do Nigerians keep falling for schemes like this?

I think I’ve figured it out.

There are three categories of people who are always the easiest targets for Ponzi schemes:

1. The Very Rich Who Don’t Know What to Do with Their Money

Some people have more money they don't know what to do with it. I once visited an investment office to inquire about mutual funds. While I was filling out forms, a businessman from Main Market was talking to another marketer. He asked what his returns would be if he invested ₦10 million. She told him ₦500k over a certain period. He laughed loudly and dismissed it. “It doesn’t make sense,” he said. “I can’t drop ₦10 million if I’m not making at least ₦2.5 million.”

These kinds of investors have bought all the lands in sight, built 5-storey buildings in Awada, and now they’re bored—with money lying idle. So when someone pitches a scheme that promises “crazy” returns, they jump in without blinking.

2. Young Nigerians Without an Established Source of Income

I’ve been there. You get a few jobs, earn some decent money, and then... the jobs stop coming. You’re left with some cash in your account that keeps depreciating daily. You start asking: What can I do with ₦500k? What business can I start with 1 million?

Once those questions start popping into your head, you're ripe for plucking. All it takes is one flashy testimony online, and boom—you’re in.

3. The Risk Takers

These ones? They’ll gamble anything for quick money. A young man once sold his laptop to buy crypto because his friend claimed he cashed out big. He barely understood how it worked—and lost everything.

Back in 2018, my neighbor called the police on his flatmate who convinced him to bet ₦200k that Croatia would beat France. The odds looked sweet, and the potential win was huge. But when France won, friendship ended, and the police got involved.

As long as these three categories exist in our society—the rich with idle money, the youths with no steady income, and the high-stakes gamblers—Ponzi schemes will never run out of customers.

The packaging may change. The logos may look fancier. But the story will always be the same: easy money, followed by tears.

Ozii Baba Anieto