Some residents in the Federal Capital Territory (FCT) have described network investment packages as a ponzi scheme that has no means of benefiting the public on a long term scale.

Ponzi scheme is a fraudulent investment where the operator, individual or organisation pays returns to investors from new capital paid to the operators by new investors.

Some Abuja residents told the News Agency of Nigeria (NAN) that such businesses were bound to crash.

Mr Neme George, a computer engineer, said network investment businesses do not benefit the public on the long run, rather, it would leave participants stranded.

He said “most of these network investment packages are ponzi schemes that are bound to crash one day.

“What the operators do is to take money from the initial investors to pay them back after they have gotten other clients.

“Over time when they have gotten enough clients beyond what they can manage, operators fold up and their clients don’t know who to run to.”

George, however, said that some participants had benefitted but the benefits were just at the initial stage.

According to him, the public should be cautious of such network investment packages.

He explained that greed for money led people to network investment packages, adding that there were better and genuine businesses one could
invest into.

Mrs Favour Idongesit, a banker, noted that some network investment packages were legally registered, while others operated illegally.

Idongesit observed that network investment businesses paid clients but ignorance of the operations of such packages led people into it.

“Some network business schemes will still collapse but the ignorant public is just interested in the extra money to make.

“It is like something ephemeral that will be blown away with the whirlwind someday.’’

However, Miss Nnenna Ifedi, a media personality, said network investment packages add to the income of investors.

Ifedi said that the packages had been assisting to alleviate the plight of the common man.

“Network investment businesses have helped to put food on the table of so many families.’’

Mr Candy Cassidy, a barber, said that the extra money he made from network investment packages enabled him to equip his shop.

He said that he was initially reluctant to join the network until a friend acquired some properties through such extra money.

He said that the perception of network investment packages over time had been negative due to some fraudulent activities of some operators. (NAN)