Failed Ponzi Schemes and Mental Health Challenges in Yenagoa, Bayelsa State: The Case of Baraza

Abstract

This study is based on failed Ponzi scheme and mental health challenges, a case study of baraza in Yenagoa, Bayelsa State, Nigeria. This study employed the use of the social strain theory and cognitive theory to unravel the reasons why some individuals venture into Ponzi scheme, this study made used of the snowball method in collecting data using the qualitative instruments of data collection (IDI) to collect data from 20 or 25 persons base on the fact that the study was qualitative, and the data where analyzed using the thematic method of data analysis, this study investigates the mental health challenges investors of Baraza face due to the failure of the scheme and  findings shows that among those whom were victims of baraza, their mental state was associated with fear, psychological trauma, anxiety, suicidal thoughts, money security, distrust in clergymen, financial debt and excessive thinking. The second objective was to ascertain the socioeconomic impact of the failed scheme on baraza investors and it reveals that victims of baraza could no longer fulfill their laid down objectives, family basic necessities was problematic because no planned monthly income was made possible, those whom intended starting up businesses with the promising returns could not venture into their business. And also, this study intended knowing the coping strategies investors of baraza employed to deal with the mental health challenges they experienced, it unraveled that majority of the participants relied on the help of God to get them through the challenging moments of their lives. Some had to get involved with betting to help them forget the pains and mental challenges the failure of the scheme had on them. However, it is important to state that the government, it's agencies and investors have a role to play in other to reduce the rate of failed Ponzi schemes. The government and its agencies should ensure that investment platforms that operates within the state and country have registered with its financial regulations institutions and have met with its terms and conditions, and investors should ensure that before investing their money into any scheme it has been registered with the government and its financial regulatory institutions.