Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
Calabar, Nigeria — Another suspected Ponzi scheme has collapsed in Cross River State, leaving scores of investors counting heavy losses and renewing concerns over the growing number of fraudulent investment platforms operating in the state.
The latest scheme, identified as the TAG Investment Platform, reportedly ceased operations after barely three weeks in Calabar, the state capital. Angry investors stormed the company's office after discovering that its operators had allegedly fled, leaving behind only office equipment and a few items.
Eyewitnesses said frustrated victims carted away whatever they could find inside the premises, including bags of rice, office furniture and bicycles, while others damaged doors and windows in a desperate attempt to recover part of the money they had lost.
Many of the investors had reportedly been attracted by promises of unusually high and quick returns on their investments. Some claimed they initially received payouts, encouraging them to invest even larger sums before the platform abruptly shut down.
One trader from Watt Market said she invested ₦500,000 during the scheme's first week and received ₦1 million in returns. Encouraged by the payment, she reinvested the money and expected another payout, only to discover that the operators had disappeared before the scheduled payment date.
Several victims alleged that the operators deliberately fixed payment dates for many investors on the same day before abandoning the business, a tactic they believe was designed to maximise the amount collected before disappearing.
The chaotic scene outside the office also led to reports of theft, with one distraught woman claiming her mobile phone was stolen while people struggled over items left behind by the operators.
The incident has once again highlighted the persistent problem of fraudulent investment schemes in Cross River State. Despite repeated warnings from financial regulators and security agencies, many residents continue to fall victim to platforms promising unrealistic returns within short periods.
Cross River has witnessed several high-profile Ponzi scheme collapses over the years. During the military era, a notorious operation popularly referred to as a "Wonder Bank" reportedly defrauded numerous residents before its operators disappeared.
Years later, the collapse of the MMM scheme affected many Nigerians, including residents of Cross River, with countless investors losing their savings after the platform failed.
In Bakassi Local Government Area, another investment platform known as Micheno reportedly attracted huge deposits from residents before collapsing, with losses estimated at more than ₦1.5 billion. Although the alleged operator was later arrested, many victims were unable to recover their money.
Following that episode, another investment platform known as NRC reportedly opened offices across Cross River and attracted large numbers of investors with promises of substantial profits. Like previous schemes, it allegedly shut down shortly before investors were due to receive their returns.
A similar incident occurred last year when another investment company operating along Bassey Duke Street in Calabar reportedly disappeared overnight after paying early investors to build confidence and attract more deposits. Staff members who arrived at work the following day were reportedly confronted by angry investors demanding refunds.
Officials have repeatedly warned members of the public to verify the registration and regulatory status of investment companies before committing their money. Financial experts also continue to caution that schemes promising excessively high returns within short periods often exhibit the characteristics of Ponzi operations, where payments to existing investors are funded using deposits from new participants rather than legitimate business activities.
The latest collapse has renewed calls for stricter regulatory oversight, greater public awareness and stronger enforcement against fraudulent investment operators, as many victims struggle to recover from significant financial losses.
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