Home Investment The Major Effects of Online Investment Platforms on the Economy of Nigeria

The Major Effects of Online Investment Platforms on the Economy of Nigeria

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Food, shelter, and clothing. This trio is famously known to constitute the basic needs of man and that is a fact. Life itself is synonymous to the tale of “praising the cook for the food and ignoring the fire used in cooking“, simply put in this matter, we all need something to get that three necessities-money. Money doesn’t just fall off from trees or rains down from the heavens, no you got to do something to get something.

Money doesn’t just fall off from trees or rains down from the heavens, no you got to do something to get something.
Honestly speaking, gone were the days when employment looked for people in Nigeria. Today the reverse is the case as even PhD holders are not even assured of getting employed where and when they deserve. One cannot tell where the tree bearing forth fruits of this hoodoo is planted, but we all can testify that it is hidden somewhere no one knows. A popular Nigerian pidgin adage “Man must chop“, translated in original English to mean, “Man must eat” explains the struggle and natural desire and need for food. In a country where getting jobs is now a problem, and the punishment of crimes outweighs the prevention of crimes, a normal thinking, and patriotic poor Nigerian will look for means to survive without causing harm to others.
Over the years, Nigerians have welcomed with a warm hug online investments schemes or as people love to call them Ponzi schemes.

The internet obviously didn’t just come to help students with their assignments, research or to aid faster and easy communication between people in very far distances. The internet also quietly came with some goody bag. Many people have overnight turned their fortunes around and rocketed themselves into millionaires through the internet. It is no news that since the beginning of these online schemes, there have been ups and downs as most of them failed. But people still never gave up. We are in the era of the Mavrodi Mundial Moneybox scheme popularly known as MMM. Millions of Nigerians have fully invested in this online investment scheme, but what is the effect of this schemes on the economy of the nation?

Let’s talk about the good, the bad and the ugly of online investment on the economy of Nigerian.

The Good

The year 2016, witnessed the coming of the MMM scheme in Nigeria. In August 2016, the Nigerian Securities and Exchange Commission declared MMM a ponzi scheme and advised Nigerians to distance themselves from the scheme. But provided that this scheme and many others just like it were in no way going against the provisions of any law of the country, the government couldn’t ban it. The scheme (MMM) will give a 30% return to its members. No other investment scheme will offer an individual such. If one can survive the first few months, he can use the vapors to make further investments and that will make him richer and also if one refers others the returns get better. Point here is, if these schemes work well and pay when due, it will create an avenue for investments as people will no longer have to depend on there salaries nor will they have to wait for pay-day before the can afford to pay bills,  of which, the poverty rate in the country may reduce and that will boost the economic prowess of the nation.

The Bad

Be not so quick to forget that these investments schemes are not government funded so they can crash unexpectedly. Now, if an individual, having been paid by these schemes in recent months, it is only human that anybody will expressly give them his trust, and when that happens from investing 10,000 naira, one may have the urge to invest even more. Follow precedence, most of these Ponzi schemes have failed and left many Nigerians helpless. Many committed suicide, much more attempted it and many were left in debts. This will punch holes in the nations economy as millions that would have been used for other productive things that will boost the economy will  disappear into thin air. Such lacuna is bad for the economy.

Talking about the Ugly

There will be no economy without the people and anything that affects the people should be the priority of the government to fight, but as earlier stated these schemes are not in any way opposing any provision of the Law in Nigeria and despite every warning by the government, people still rush into this schemes. Now, it is no news that at the news of a fold up of these schemes, people die. This in itself is not good for the economy.

What is the way forward? Despite the end results of most of this Ponzi schemes , Nigerians still are not ready to leave it. The most feasible option right now is government intervention. There are a million and one way to create employment in this country and the government can start by getting what needs to be done done. When there is development, minds will be occupied and people will start thinking of investments like this. If they must stay, the government may wish to be intimated with the Modus operandi of these schemes so as to determine how imperative it will be to the economy. Once this is done, a fold up will be almost impossible. Above all, government should try and make all and sundry positively busy as that is the best way to boost the nations economy.

Horace Greely once said, “The darkest hour in a man’s life is when he sits down to plan how to get money without earning it”. Whatever what, online investments just like chickens meat have their flesh and bones. It either feeds the economy or chokes it, whichever way it all depends on us. Will love to hear out your views concerning this topic. Drop a comment in you have any.

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