The Nigerian Senate has launched a sweeping investigation into the operations of Ponzi schemes across the country, following the collapse of the Crypto Bullion Exchange (CBEX), which allegedly defrauded Nigerians of over ₦1.3 trillion (approximately $847 million).
The resolution was reached after a motion was sponsored by Senator Adetokunbo Abiru (APC, Lagos East) and co-sponsored by Senator Osita Izunaso (APC, Imo West) during plenary on Tuesday.
A joint committee comprising the Committees on Banking, Insurance and Other Financial Institutions; Capital Market; Anti-Corruption and Financial Crimes; and ICT and Cybercrime has been mandated to conduct investigative and public hearings across the six geo-political zones. The committee is expected to report back within four weeks.
While presenting the motion, Senator Abiru condemned the rising trend of fraudulent investment platforms in Nigeria, including past schemes like MMM Nigeria in 2016 and MBA Forex in 2020. He said:
“The CBEX incident is particularly troubling. It lured millions of Nigerians with promises of outrageous returns and collapsed abruptly, resulting in one of the most devastating financial scams in the nation’s history.”
He blamed the failure of regulatory bodies for the unchecked spread of such platforms, saying:
“It is disheartening that despite the scale and visibility of CBEX’s operations, key agencies such as the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU) failed to act promptly.”
Senator Abiru attributed the growing appeal of digital Ponzi schemes to widespread unemployment, poverty, low financial literacy, and limited access to legitimate investment opportunities. He stressed the need for urgent reforms to protect Nigerians from further financial harm.
Senate Chief Whip Tahir Monguno (APC, Borno North) described the situation as “alarming” and urged the Senate to hold relevant agencies accountable.
“Regulatory bodies must be held accountable for their inaction,” he stated.
Also backing the motion, Senator Sadiq Umar (APC, Kwara North) underscored the importance of protecting citizens and restoring public confidence in financial institutions.
Chairman of the Senate Committee on Appropriations, Senator Olamilekan Adeola (APC, Ogun West), also weighed in on the matter:
“Ponzi operators have taken advantage of our weak regulatory framework. It is unacceptable that billions of naira are lost while regulatory agencies remain passive. We must act decisively.”
The Senate resolved to use its constitutional oversight powers to investigate the regulatory failures that allowed CBEX and similar schemes to operate unchecked. It also pledged to recommend mechanisms to prevent future occurrences and ensure better protection for Nigerian investors.
