The Nigerian Senate has launched a nationwide investigation into the rising menace of Ponzi schemes, following the collapse of Crypto Bullion Exchange (CBEX), which allegedly defrauded Nigerians of over N1.3 trillion.
During plenary on Wednesday, the Senate mandated its joint Committees on Capital Market, Banking, Insurance and Other Financial Institutions, Anti-Corruption and Financial Crimes, and ICT & Cyber Security to conduct a thorough investigative and public hearing across all geopolitical zones of the country.
The move followed a motion sponsored by Senators Adetokunbo Abiru (APC, Lagos East) and Osita Izunaso (APC, Imo West), calling for urgent action to protect citizens from unregulated digital investment platforms.
Abiru, who chairs the Senate Committee on Banking, raised concern over the growing sophistication of fraudulent investment schemes like CBEX, MMM, and MBA Forex, which have lured millions with promises of quick returns, only to disappear with their money.
He noted that CBEX, a digital investment platform, defrauded investors of over \$847 million (about N1.3 trillion), making it one of the biggest financial scams in Nigeria’s history. Despite its large operations, Abiru said regulatory bodies like the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Economic and Financial Crimes Commission (EFCC) failed to act on time.
He blamed factors such as high youth unemployment, poverty, low financial literacy, and lack of formal investment access as key reasons Nigerians fall for such scams.
Senate President Godswill Akpabio, in his remarks, recalled being a victim of a similar scheme in the 1990s and praised the motion’s sponsors. He directed the joint Senate committees to carry out a detailed investigation and report back in four weeks.
The Senate aims to recommend reforms to prevent future scams and hold responsible agencies accountable.