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How MMM will affect nigeria economy

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MMM-Nigeria has gained popularity among Nigerians as the programme promises a monthly payment of 30 per cent interest on loans provided by participants. Usually, participants are expected to provide loans for a minimum of N20, 000 to get a 30 percent interest within 30 days. The system operates on two platforms which is Provide Help (PH) and Get Help (GH).

How it works:

If a participant requests to Provide Help of N20, 000 today, he/she is expected to be matched within the next 14days with another participant or participants, and after payment, the donor gets back a full repayment of his loan (N20,000) and 30 percent (N6,000) within the next 15 days. This implies that the donor gets N26,000 from another participant or other participants after 30days.

No impact on the banks—–Bankers

A banker, Folashade Amosu said “MMM does not have any impact on the banks because it does not involve withdrawal of money from banks but transfer of money from one bank account to another. Also, the amount of money involved per person is usually small, mostly N1 million and below, hence it has little or no impact on the bank. In his own contribution, Michael Ilifo, who is also a banker, said, “MMM is not an organisation, it does not have staff. It is a computer application that matches people who need financial assistance to people willing to provide financial assistance. The money goes from one individual bank account to another individual bank account. Money does not leave the banking industry, so there is no impact. I think the problem is that people criticise what they have not taken time to study and understand. MMM is not a ponzi scheme but a pyramid scheme. Dr. Uju Ogubunka, President, Bank Customers Association of Nigeria (BCAN) however argued that “MMM is a faceless scheme, so I advise people to be careful in their dealings with it because there will be nobody to complain to if anything goes wrong.”

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Apart from affecting Nigeria Banks, MMM will also make Labour expensive in Nigeria and that will lead to shortage of Man power.
we urge FG to take MMM Serious by Taking it down because the effect is tremedulous.

 

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