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Home Health MLMs Like Neolife Face Rising Criticism in Nigeria Over Financial Losses, Psychological Stress, and ‘Brainwashing’ of Young People

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MLMs Like Neolife Face Rising Criticism in Nigeria Over Financial Losses, Psychological Stress, and ‘Brainwashing’ of Young People

West Africa WeeklyDecember 16, 20252 Mins read9

Multi-level marketing (MLM) companies operating in Nigeria, including well-known names such as Neolife, Forever Living, Longrich, DXN, and Edmark, are facing criticism amid growing complaints about financial losses, psychological pressure, and systematic “brainwashing” of recruits.

While MLMs remain legal in Nigeria and operate under a product-based direct-selling model, consumer advocates and former participants say the lived reality for many Nigerians differs from the glossy success stories often promoted at recruitment meetings and on social media.

At the core of the controversy is how these schemes are marketed. Former distributors frequently describe an environment built around intense motivational messaging, repeated slogans about “financial freedom,” and the elevation of a small group of top earners, claiming that success is inevitable for anyone who works hard enough. This creates unrealistic expectations and discourages critical thinking.

Many Nigerians who joined MLMs report losing money after paying for starter packs, compulsory monthly products, seminars, and conferences. While recruiters often stress that income comes from product sales, former members say earnings in practice depend heavily on constant recruitment, a process that becomes difficult over time.

Products are also repeatedly described as overpriced relative to local alternatives, making resale challenging in a price-sensitive economy. As a result, many distributors end up consuming the products themselves or abandoning the business altogether.

Beyond financial loss, former participants describe social fallout. Friends and family members are often the first recruitment targets, which can strain relationships when expectations are not met. Some former distributors say they experienced shame and isolation after publicly promoting the business and later withdrawing.

The heavy use of affirmations, success chants, and closed-group messaging can create a form of psychological conditioning that discourages dissent. These systems thrive on emotional commitment. Once someone’s identity and self-worth become tied to the scheme, questioning it feels like personal failure.

A particularly troubling development is the increased outreach to younger Nigerians, including secondary school students. While MLM companies officially state that participants must be adults, parents report that teenagers are being invited to “business seminars,” “leadership trainings,” or “wellness talks.” These events introduce MLM ideology early, normalising recruitment culture before young people have the financial literacy or legal capacity to assess risks.

Children are being sold dreams of early wealth instead of education and skills, which is deeply worrying. Early exposure alone raises ethical questions and calls for closer regulatory oversight.

Nigerian regulators need to strengthen oversight of direct-selling companies, particularly around income claims, health-related marketing, and youth exposure. There should also be greater transparency in average earnings and stricter enforcement of misleading promotions.

MLM companies, including Neolife, maintain that they are legitimate businesses offering optional income opportunities and deny that they encourage deception or exploitation. They argue that success depends on individual effort and that products are sold globally.

However, the issue is less about legality and more about impact. These schemes may be legal, but legality does not equal fairness. When a business model depends on constant recruitment and emotional manipulation, the majority are almost guaranteed to lose.

As Nigeria struggles with unemployment and economic pressure, desperation makes young people especially vulnerable to promises of fast wealth. This reality could fuel further controversy around MLM operations in the months ahead.