The Nigerian Senate has launched a sweeping investigation into the growing menace of Ponzi schemes in the country, following the collapse of the Crypto Bullion Exchange (CBEX), which reportedly defrauded investors of over ₦1.3 trillion.
The resolution was adopted after a motion was raised on the floor by Senator Adetokunbo Abiru (Lagos East), who expressed grave concern over the unchecked spread of fraudulent investment platforms. He cited high-profile cases such as MMM Nigeria (2016), MBA Forex (2020), and most recently CBEX — all of which enticed millions of Nigerians with promises of extraordinary returns on digital and forex assets.
“The victims of CBEX have suffered devastating financial losses and emotional trauma, with some cases reportedly leading to depression, family breakdowns, and even suicide,” lawmakers warned during the debate.
The Senate expressed shock that CBEX operated unchecked for months, conducting high-volume online transactions with no visible regulatory intervention. Lawmakers criticized the lack of timely action from key agencies such as the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).
As part of its resolution, the Senate mandated a joint committee to investigate the CBEX scandal and the broader proliferation of Ponzi schemes. The committee is expected to hold a public hearing and submit its findings within one month.
EFCC’s Role and Legal Action
The Economic and Financial Crimes Commission (EFCC), which has come under scrutiny, had earlier claimed it took proactive steps to warn the public about such schemes. Speaking on Channels Television’s The Morning Brief, EFCC spokesperson Dele Oyewale stated:
“You’ll recall that on March 11 this year, the Executive Chairman of the EFCC, Mr. Ola Olukoyede, had cause to instruct us to alert Nigerians about 58 Ponzi scheme companies; we came out with a list – that shows that we’re proactive and we have our hands on what is happening.”
On April 25, the Federal High Court in Abuja granted the EFCC’s request to arrest and detain six promoters of CBEX over alleged investment fraud amounting to over $1 billion.
Justice Emeka Nwite issued warrants for the suspects’ arrest and granted the agency’s ex parte application to hold them in custody pending the outcome of investigations.
In its motion, argued by EFCC counsel Fadila Yusuf, the agency outlined four legal grounds, asserting its statutory duty to detect and prevent financial crimes through proper investigation and prosecution.
The Senate’s probe is expected to intensify pressure on financial regulators to take firmer action against illicit investment platforms and offer greater protection to unsuspecting Nigerians caught in the web of digital-era fraud.
