INVESTIGATING THE SOCIO-DEMOGRAPHIC CHARACTERISTICS AND VULNERABILITY OF PONZI INVESTMENT SCHEME VICTIMS IN ABA, ABIA STATE, NIGERIA

Abstract

This study investigated the socio-demographic characteristics and vulnerability of Ponzi investment scheme victims in Aba, Abia State, Nigeria. Specifically, the study identified the demographic characteristics distinguishing victims, examined their socio-demographic profile, and assessed the factors associated with their vulnerability. Aba City,  comprising 2 Local Government Areas, has a projected population of 1.1 million. The population  of study is projected at 751,657 while the sample size is 564. A mixed-methods cross-sectional survey design was adopted. Quantitative data were collected through a 10-item researcher-developed semi-structured questionnaire with a 4-point Likert scale questionnaire administered to 600 respondents, of which 564 valid questionnaires (94.0%) were analysed. Qualitative data were generated through Key Informant Interviews and Focus Group Discussions. Respondents were selected using a multi-stage sampling procedure from Aba North and Aba South Local Government Areas, while quantitative data were analysed using descriptive statistics, cross-tabulations, chi-square analysis and one-sample statistics in SPSS. Qualitative data were analysed thematically to complement the quantitative findings. The results revealed that victims were predominantly young adults aged 16–25 years, males, single, and individuals with secondary or tertiary education. However, low monthly income and the absence of regular income emerged as the most prominent socio-economic characteristics associated with vulnerability. Social media exposure, financial hardship, unrealistic expectations of high investment returns, and limited financial literacy were identified as the principal drivers of Ponzi scheme victimisation. The study concludes that vulnerability to Ponzi investment schemes is shaped more by socio-economic pressures and behavioural influences than by educational attainment alone. It recommends intensified financial literacy programmes, strengthened regulatory oversight, enhanced monitoring of online investment promotions, and sustained public awareness campaigns targeting youths and other economically vulnerable groups.