FACTORS INFLUENCING UNDERGRADUATES’S INVOLVEMENT IN PONZI SCHOMES IN TERTIARY INSTITUTIONS IN ANAMBRA STATE, SOUTH-EAST, NIGERIA

Abstract

Swindling is a reoccurring phenomenon that has always been in existence since human history and its dimension has not changed. In today’s financial world, Ponzi scheme appears as a more repackage swindling activity with adverse consequences on not just the victim but the society in general. The study examined the factors influencing undergraduates’ involvement in Ponzi schemes in tertiary institutions in Anambra State, South-East, Nigeria. Theory of gullibility was adopted as the theoretical orientation of this study. The mixed methods research design was adopted and multi-stage sampling procedure was used in selecting respondents. A sample size of 1093 was generated statistically using Taro Yamane formula for determining sample size. Instruments for data collection were structured questionnaire and In-Depth Interview (IDI) Guide. The quantitative data were processed using Statistical Package for Social Sciences (SPSS) software. The interviews from the quantitative data were processed using Nivivio and they were analyzed using illustrative quotes extracted from the interviews. The findings indicated that high interest rate, financial handicap, peer pressure, financial investment illiteracy, lack of awareness, greed and materialism were amongst the factors that influence undergraduates’ involvement in Ponzi schemes. Therefore, it was recommended amongst others that government should incorporate indigent undergraduate into Social Safety Net Programme (SSNP) with a monthly stipend. This will help to discourage them from engaging in unhealthy ventures and will also go a long way to cushion the effect of harsh economic realities on poor students.