The Nigerian Senate has ordered an investigation into the growing spread of Ponzi schemes in the country, following the dramatic collapse of Crypto Bullion Exchange (CBEX) a digital investment platform accused of defrauding investors of over ₦1.3 trillion.
The Senate’s resolution came on the heels of a motion presented by Senator Adetokunbo Abiru (Lagos East), who raised alarm over the widespread damage caused by unregulated investment schemes that continue to exploit unsuspecting Nigerians.
Senator Abiru cited notorious examples such as MMM Nigeria (2016), MBA Forex (2020), and now CBEX, all of which promised unrealistic returns and left behind thousands of financially devastated victims.
During debate on the motion, several lawmakers described the CBEX collapse as having catastrophic psychological and financial effects, with reports of victims experiencing depression, family breakdowns, and in some extreme cases, suicide.
“It is deeply troubling that CBEX operated so openly and at such a massive scale without being stopped early,” one lawmaker noted, expressing frustration with the perceived inaction of key regulatory bodies.
The Senate expressed disappointment over the failure of agencies such as the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC) to intervene before the scheme collapsed.
As a response, a joint Senate committee has been tasked with investigating the situation. The committee will conduct a public hearing and submit its report within one month.
EFCC Steps In Amid Rising Ponzi Fraud
The Economic and Financial Crimes Commission (EFCC) had previously issued warnings about fraudulent investment platforms. Earlier this year, EFCC spokesperson Dele Oyewale recalled that the commission had flagged 58 Ponzi scheme companies in a public alert issued on March 11.
“That list showed we were proactive and tracking the situation,” Oyewale said. “The chairman of the EFCC, Ola Olukoyede, had directed us to warn Nigerians early.”
In April, the Federal High Court in Abuja, presided over by Justice Emeka Nwite, approved a motion by the EFCC to arrest and detain six CBEX promoters over allegations of investment fraud exceeding $1 billion.
The EFCC, through its counsel Fadila Yusuf, sought permission to keep the suspects in custody while investigations continue. The agency argued that the arrests were necessary under its legal mandate to detect, investigate, and prevent financial crimes.
