Earlier today, I did a post on Nospetco and other so-called “wonder banks”. This evening, I visited Nairaland (a forum targetted at Nigerians) and came by this thread titled: “Hyip Scheme Horror Stories: ‘Investor’ Beware“. This thread was opened by the forum admin Seun Osewa, and started with the text:
Hello,
If you have lost a lot of money to pyramid schemes, HYIPs, MLM programs, etc, why not share your story with us? (My boring story is that I have never squandered money such ventures, and never will. What’s yours?)
Regards,
Seun Osewa
I have always known Seun’s stand against HYIPs and all other forms of pyramid schemes. He simply abhors them. He has never hesitated to express his views about the subject matter. However, the reaction of the forum users, throws a light on how many Nigerians see the “investment” schemes.
If the comments are anything to go by, one can thus conclude that many Nigerians indeed know that the “wonder banks” are scams but still choose to gamble their money. I will summarize the views of the posters, to put this into perspective. (Of course, I will not repeat the insults on my blog 
)
- The forum admin maintains a hard stance and only seeks self-glorification when the schemes collapse.
- His opinion that the schemes will collapse is “cheap prophesy”. He is raising false alarms.
- His advice is unsolicited. The forum is not a kindergarten and the forum users are over 18 and can decide for themselves.
- They are not investing his (forum admin’s) money; they did not borrow from him to invest. They prefer being left alone.
- They know it won’t last forever, but choose to make the best use of them.
- A poster suspects “some ill-passionate aspect of jealousy”.
- “Please LEAVE us & our stupidity alone, we are enjoying what we are doing.”
- Buying shares in the stock market can be likened to HYIPs too.
- It’s a free world.
I am forced to reproduce part of this post because I believe it expresses the views of many of these ‘investors’:
Before I started investing in HYIPs, I was in debt. Today I am worth millions. I use to borrow to pay my children’s fees, now I give away money. I pay other people’s children fees. I am able to help my relations. That’s why I believe that 6 months of HYIP is better than 8 years that your brother spent in aso rock.* LEAVE US ALONE TO GAMBLE WITH OUR MONEY. GOVERNMENT HAS NOT OUTLAWED GAMBLING. IF WE COME CRYING TO YOU LATER, FLOG US OUT OF YOUR PRESENCE. QED.
* The poster is obviously referring to Olusegun Obasanjo, former President of Nigeria who lead for 8 years from Aso Rock, the official office/residence of the President).
If indeed many of the “investors” know what they are about, then one needs to approach the issue with some caution. Like one poster aptly puts it, the warning issued by the Federal Ministry of Health on all cigarette packs in Nigeria, has not stopped many Nigerians from smoking.
22 responses so far ↓
1 Oluniyi David Ajao // Aug 1, 2007 at 8:17 pm
Nospetco, Sefteg etc are not registered Fund Managers, says SEC
Security and Exchanges Commission (SEC) is the apex regulator of the Nigerian capital market. The commission recently issued a public notice, listing the registered as well as illegal fund managers:
The Securities and Exchange Commission hereby informs…
2 Ifeoluwa // Aug 1, 2007 at 9:04 pm
I think Seun is just expressing himself………
Well, as for me , I’ve got no money to invest in the schemes (it may be becuase I don’t have the money sha)..
Anyway goodluck to you investors
3 student001 // Aug 2, 2007 at 10:21 am
I am still at a loss on the whole wonder bank issue. Having been told about it in passing, I have not really seen anyone that is in it.
One of my mates in London keeps bringing it up on our gist and have even told me about one in Ilorin he intends to invest in.
To some extent, i do share with some of the responses on the forum in regards to survival and lack of government’s support and economic empowerment.
However, I do not know where the power lies in here whether it is with the CBN or SEC. As long as they have not been shut down officially, anyone is free to do anything with their money as long as it is insured against loss.
4 Seun Osewa // Aug 2, 2007 at 11:32 am
Thanks a million for this excellent summary of what happened on our risky/spam-prone business forum.
I’m normally inclined to allow people who want to lose their money to do just that, because experience is the best teacher, but some people were beginning to think of Nairaland as primarily an ‘HYIP forum’.
And I cannot accept that. When people lose their money, they are going to be looking for someone else to blame. I cannot allow the Nairaland.com brand to be harmed when those HYIPs inevitably crash.
That’s the reason for the crackdown. I’m happy to have it off my chest!
5 Yomi Adegboye // Aug 3, 2007 at 1:13 pm
I disagree. What of the moral power that lies in the hands of the individual? From the responses I have received from some people on this issue, from what I have read on blogs, and from the responses to Seun, most of these folks are not deceived into getting into these schemes; they wilfully respond to greed, ignore all the warning signs, and deliberately put their funds into what they know in their hearts is wrong.
Whether government acts on something or not, what is wrong is wrong, and the power to choose over right or wrong lies not in the hands of government, but in our hands - you and I.
6 Digital Money World // Aug 5, 2007 at 1:10 pm
Inside Look: Nigerian Consumers and HYIPs
In the digital currency business, online ponzi scams and pyramid deals are a real global problem. Trying to prevent this type of fraud means exposing the scam and educating potential victims. Its a big job but I’m happy to say that some people …
7 uzoma eze // Aug 6, 2007 at 4:10 pm
hi well HYIPs depend on the stuff you are refering to is good and bad but not all HYIPs are bad so i would say look before you leap
8 DGC Blog - Digital Gold Currency Blog » Inside Look: Nigerian Consumers and HYIPs // Aug 7, 2007 at 12:34 pm
[...] he sent me a link to this story, “Leave Us Alone!” Nigerian HYIP Investors tell Nairaland Forum Admin In August I’m taking a closer look at HYIP scams, how they generally operate without any [...]
9 chinanu // Aug 18, 2007 at 4:54 pm
Millions of people are not making the expected average profits in their online business.The internet gives us a wider chance to make Millions in a week and that is with the appropriate capital though.
I have been researching for the best way to make money consistently via the internet for more than 6 years. I have found out that e currency is the gateway to internet success.After i made the discovery, i was sceptical on putting my money online due to massive fraud on the internet.
I tried and created an egold account which i used to setup various afilliate program. After working on my affiliate programs i wasn’t making any money,then i stopped.i got a paid job and worked for 7 months before i stumbled into forex trading textbook which refered me to different investment programs.
So i signed up for forex trading and was asked to deposit money via egold, I was about to get my previously created egold account and found out that i already have $800 in my egold account,money from those affiliate business.Since i invested the money into forex trading,it has been an easy and funfilled life for me.
One simple truth is that the money you make online is propotional to the wealth of internet and computer know-how you have. Dont join forex if you have not been taught by a good book or tutor.forex changes life.if you invest $3M in forex after one week you must have $5-$9M excluding capital. I want you to aviod fraud it is a wholesome waste of time.if you want to make money then learn.for forx one on one training contact me tzamse@yahoo.com
10 Oluniyi David Ajao // Aug 20, 2007 at 2:03 am
The fact that I allowed the above infovertising comment does not mean I endorce it.
11 Oluniyi David Ajao // Aug 21, 2007 at 7:19 am
Treasureline Interlink Limited stormed by soldiers and policemen
Treasureline Interlink Limited is one of the “wonder banks” in Nigeria, promising unusually high returns on investments. Apparently, not only civilians invest in these HYIP schemes, but soldiers and police men/women alike. According to a st…
12 Nnamdi Okoli // Sep 7, 2007 at 11:59 am
HYIP can be rewarding. It depends on how honest the pioneers are
13 Omion Emmanuel // Nov 7, 2007 at 12:04 am
Nice reviews on the posting in NA above, HYIP is actually not the problem but the greed of Nigerians for unreasonable returns is the problem.
As it was rightly said, most investors knows quite well these schemes will fail, but were praying that it won’t fail when they have invested theirs, as you and I know they were dead wrong they all lost one way or the other.
But some have actually made money from it and that is why I am sentimental about Nospetco, before these other ones that came to spoil business for them,they were paying people for years regularly,but because Nigerians were withdrawing money in droves and were investing in the bogus schemes ,rendering them short of money which led to their problems). Many Nigerians had profited from Nospectus and it could have continued because they have a lot of investment on oil and gas which everybody can see.
My advice, if we keep putting our resources in businesses with reasonable returns we may not be having these kinds of problems. Another area Nigerians are going to lose and are still loosing is FOREX (ask how many have actually made it)
14 davomex // Dec 12, 2007 at 10:23 am
I appreciate your stuff Niyi, great stuff, proud of you boss.
15 Oluniyi David Ajao // Dec 12, 2007 at 4:10 pm
Davomex, I had to edit your comment against my wish. It was plainly an ad. I’m sure you understand.
16 airforce one // Feb 22, 2008 at 12:01 pm
late this might be but i must congratulate mr seun nairaland if truly he stood rigidly against such fraudlent nonsense. unlike some others that claim to be motivators yet not only did they indulge in it but used their popularity to get thousands to sign in to their own advantage. this fellow having met with the md of a hyip wouldnt outrightly decry them as fraud but with tongue in cheek said people should decide for themselves. now its like my G.O being aware of something as being nasty and with the way he knows we look up to him not outrightly denounce but that we should decide. what is bad is bad and only when you have shouted it loud and clear can you be absolved of blame of the consequences if any evil befalls your fellow man. peace
17 Nap Olean // Mar 24, 2008 at 3:24 pm
HYIPs are illegal. Smoking is not. That is a big difference.
Smoking hurts only the individual smoking whereas a HYIP drags in many people by the very nature of it’s structure: new victims must be lured in so that the higher up victims can get paid.
18 Dollarsforum // Apr 8, 2008 at 2:42 pm
Dear David,
Seun is not an investor. Fear to invest in hyip because He does not understand the system and the working of hyip. He only know how to manage nairland.com which is a forum. He is not internet marketer, he only earn money from google adsense and that’s what’s he knowns and believ. I wonder how he manage to even lauch a forum.
The truth most be told though it is bitter. Everything in life is risky even the we live is risky talkless of the food we eat.
If you want to succeed in life you must take risky the higher the risk the higher the you will succeed. There is no too ways about it. If you want to be wealthy and have access to the good things of life than you must surely invest your money. either in forex, stock, shares etc or even in business investment.
The admin of dollarsforum.com once said.”God gave us internet taht who soever undertand the internet will not die of poverty but shall make a living online 24 hrs a days 7 days a weeka nd 365 days a yr and throughout his or her day on this planeth.”
If you do not fear risky your money and invest online i promise you the sky will be your limit.
dollarsforum.com is one of the top forum in Africa and the world at large
19 NaijaEcash // Apr 10, 2008 at 4:53 am
I guess most of the people supporting this schemes are not doing their home work well. Greed and instant gratification cannot form a lasting foundation for building sustainable wealth.
Anyone that understand how successful business empire were built and sustained from one generation to another will know that pyramid schemes are not the way to go.
We can only advise while we work on ourselves so that when we have become successful, it will be easier for people to believe us that “consistent hard work, is far better and surer than get rich quick schemes”
Thanks for sharing your insight on this issue.
20 OLUSEGUN SUNDAY // May 20, 2008 at 1:17 pm
my comment is on the wonder banks,how far with their account that is being forzen by central bank.Any hope for the investors whose money is trapped?
SEGE
21 omion sunday // May 26, 2008 at 11:02 pm
Actually am not in nigeria right now, but i still know one or two things about my country. Nigerians have a problem and the problem is the love of money. i was surprise when a friend of mine told me there was a company called treasure line and if u pay 400,000 u will receive 1,200,000 within 3 months. u can imagine all these useless companies came and put nospectus into problems. Nospectus is a company u can invest in if not for the so called magic double company that came and spoilt there smooth running system. It is sad people should stop jumping into all these fake company. 300%person within 3 months is a fake investment.
22 AJEH // Jun 19, 2008 at 4:13 pm
What is the latest about wonderbanks? Is the government (Central Bank of Nigeria) ready to pay back the capital invested by individuals or allows the respective Wonderbanks to pay their members?
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