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Ponzi and Pyramid Schemes in Africa: How They Work and How to Avoid Them

  The Recurring Trap: Why Ponzi Schemes Keep Winning Another Ponzi scheme, NRC, recently crashed in Nigeria, leaving many people counting their losses. From educated professionals in the cities to traders and workers in remote areas, the story was largely the same. People lost money they had worked hard to earn, all in the name of “investment”. Of course, it never looked like a Ponzi scheme to most of them when they were putting money into it. It likely appeared as a lucrative opportunity, one that promised a faster escape from financial pressure or a shortcut to wealth. For some, it was a calculated gamble. They knew the risks but believed they could outsmart the system and exit before the collapse. As history has shown repeatedly, most do not.

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