HIKMA PUBLISHER

Hikma Journal of Interdisciplinary and Multidisciplinary Studies
Published: September 26, 2026 | Vol. 1 Issue 3 | E-ISSN: 3139-5597
Research Article

THE INFLUENCE OF PONZI SCHEME CRASHES ON THE MENTAL HEALTH OF VICTIMS IN ANYIGBA, KOGI STATE, NIGERIA

Timothy Abayomi Atoyebi, Ph.D1✉, Edime Yunusa, Ph.D.1, Ejuchegahi A. Angwaomaodoko2, Abdulkareem, Muhammed Nesiru1
1 Department of Sociology, Faculty of Social Sciences, Prince Abubakar Audu University, Anyigba, Nigeria
2 Department of Education, College of Education, Kean University, Union, NJ, USA
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Abstract

This study examined the influence of Ponzi scheme crashes on the mental health of victims in Anyigba, Kogi State, Nigeria. Specifically, it investigated the prevalence of Ponzi scheme participation, the perceived causes of scheme crashes, victims' knowledge of the legal and regulatory systems governing investment schemes in Nigeria, the mental health effects of the crashes, and the preventive measures and support systems available to victims. The study was anchored on Anomie and Strain Theory and Conservation of Resources Theory, and adopted a mixed-methods descriptive survey design combining structured questionnaires with in-depth interviews. A multi-stage sampling technique comprising purposive, snowball and simple random sampling was used to select 383 respondents, of whom 347 valid questionnaires were retrieved and analysed, using Krejcie and Morgan's formula for sample size determination. Quantitative data were analysed using frequencies, percentages, mean scores and the chi-square test of independence at the 0.05 level of significance, while qualitative data from interviews were analysed thematically. Findings revealed an overwhelming prevalence of Ponzi scheme participation and financial loss, with 98.6% of respondents having invested in a high-return scheme and 99.4% having suffered financial loss as a result. Social media and celebrity endorsement (M = 3.78), economic instability (M = 3.68), lack of government regulation (M = 3.59) and low financial literacy (M = 3.53) were identified as the leading perceived causes of scheme crashes. Victims displayed an overwhelming lack of awareness of investment regulatory systems, with over 95% unaware of the role of the Securities and Exchange Commission or the channels for reporting fraud. The crashes were associated with substantial psychological distress, including hopelessness (M = 4.12), anxiety (M = 4.02), depression (M = 3.93) and shame (M = 3.76). Hypothesis testing revealed no statistically significant relationship between victims' regulatory knowledge and their perceived causes of the crash (χ² = 0.064, df = 4, p = .999), but a statistically significant relationship between the availability of support systems and victims' mental health (χ² = 30.068, df = 4, p < .001). The study concluded that Ponzi scheme victimisation in Anyigba is a socio-psychological crisis compounded by a near-total absence of formal support systems, and recommended strengthened regulatory enforcement, financial literacy education, and accessible community-based mental health support for victims.
Keywords: Ponzi Scheme; Financial Fraud; Mental Health; Victimisation; Anyigba; Nigeria

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🔓 Open Access | This article is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).

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