OPINION: Mathematical Analysis of How MMM-Nigeria System Works And Why It Always Bound to Fail

Nigerians are still trying to figure out what to do if the pause placed on MMM-Nigeria is finally lifted by January (hopefully it does happen). Although, the Nigeria Central Bank has been issuing warnings to Nigerians to boycott the Ponzi scheme but with the current state of our economy, a lot of Nigerians has found succor from the scheme for survival.

A Facebook user Ebuka J. Anichebe has practically explained the mathematical phenomenon in which the MMM-Nigeria System operates. In is post titled #MMMDecoded, the Marketing Expert shared an in-depth example of how the system works with it 30% grow your money scheme.

See what he wrote below:

#MMMDecoded

Assuming 5 friends A,B,C,D and E resolve to render help worth N100,000 each on MMM with 30% return on investment.

Total money in the pool will be 500,000.

Since the fund in not invested anywhere, the dormant total remains 500,000

On request of assistance

A collects, 130,000 from the pool leaving a balance of 370,000

B collects 130,000, leaving a balance of 240,000

C collects 130,000 leaving a balance of 110,000

With the balance of 110,000, it means that the fourth person D can only get his initial capital and 10% return on investment.

What happens to the fifth person, E???

An economic black hole is dug!

For every 5 persons, one person loses his invested capital.

One will wonder how the scheme survived till 12th December?

The simple answer is that the pledged and requested help were not happening simultaneously but for every help, a hole is created.

That means for 500 people, 100 will lose their money.

For 1million persons, we will have 200,000 destitutes and hole becomes wider and wider daily.

Trust has been breached. It can't be put together again. It is going to be #BlackChristmas for the 3million people whose savings are in this ponzi scheme. Yet somehow some diehard #Mavrodian folks will want to somehow continue to believe that the scheme will truly be back by January. They even continue to PH and put in more funds under the seduction of getting a 50% payback when it is unfrozen.

But that's a lie, a blatant falsification of facts or at best a skewed view on reality. I'll tell you why. Everyone will want to get their money out, who is going to provide this "help"?

Don't worry I'll keep sipping my tea while waiting to hear the answer from a die-hard Mavrodian. You can either believe in magic or you can believe in Maths. I'll go with Maths.

Mind you it's not limited to just MMM.... all the others will also come to an end sooner or later.