The Nigerian Senate on Wednesday initiated a comprehensive investigation into the surge of Ponzi schemes across the country, sparked by the recent collapse of the Crypto Bridge Exchange (CBEX), a digital investment platform that reportedly defrauded Nigerians of over N1.3 trillion.
Described as one of the largest financial scams in Nigeria’s history, the CBEX debacle has exposed glaring weaknesses in financial regulation and oversight. Senators expressed deep concern over the social and economic fallout, including rising suicide rates and diminishing public trust in financial institutions.
The motion to investigate was jointly sponsored by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West) and passed unanimously. Lawmakers from various political backgrounds condemned the regulatory lapses that allowed CBEX and similar schemes to operate with impunity.
Presenting the motion, Senator Abiru highlighted the failure of key regulatory bodies the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC) to curb such fraudulent platforms.
“Over N1.3tn was lost to CBEX alone. This is not an isolated case but part of a disturbing pattern dating back to MMM in 2016 and MBA Forex in 2020. Nigerians are being robbed repeatedly,” Abiru stated.
Senator Tahir Monguno (Borno North) described the situation as “alarming” and urged stronger legislation and enforcement against offenders.
READ ALSO: EFCC recovers funds from collapsed CBEX scheme
Senator Sadiq Umar (Kwara North) criticised regulatory bodies for their inaction, insisting that “people trust them to act, not sleep.”
Senator Solomon Adeola (Ogun West) warned of emerging threats from unlicensed fintech companies masquerading as digital innovators, calling on the CBN to clarify safeguards and vetting processes.
Senator Abdul Ningi (Bauchi Central) urged the National Assembly to invoke its constitutional powers to ensure accountability from regulators.
In a candid admission, Senate President Godswill Akpabio revealed he had once fallen victim to a Ponzi scheme in the 1990s.
“History is repeating itself, only now with even more devastating consequences, families are ruined. Lives have been lost. We must act swiftly and decisively,” he lamented.
Akpabio supported calls for public hearings and a nationwide financial literacy drive, warning: “We cannot sit back while Nigerians are being robbed blind.”
The Senate resolved to establish a multi-committee investigation involving its Committees on Capital Market; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT & Cybersecurity. The lead committee will hold public hearings and submit a report within four weeks.
The probe aims to identify systemic regulatory failures beyond CBEX and recommend broad reforms to safeguard Nigeria’s digital financial ecosystem.
READ ALSO: EFCC assures CBEX victims of recovering funds lost to Ponzi scheme
