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From Adesuwa Tsan, Abuja
The Nigerian Senate has launched investigation into the operations of Ponzi schemes in the country, following the collapse of one of the most devastating financial scams in Nigeria’s history, the Crypto Bullion Exchange (CBEX), which allegedly defrauded millions of Nigerians of over N1.3 trillion.
The decision followed the adoption of a motion sponsored by Mukhail Adetokunbo Abiru and Osita Bonaventure Izunaso in plenary yesterday.
To this end, the Senate mandated its Committees on Capital Market; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes and ICT and Cybercrime to conduct a joint investigative hearing with a view to identifying, proferring solutions and educating the public on activities of cyber fraudsters.
Speaking on the motion, Senate President,Godswill Akpabio described the CBEX collapse as the latest and most damaging in a growing pattern of fraudulent investment platforms, citing previous cases like MMM Nigeria and MBA Forex. Victims of such schemes, he said, often suffer not only financial loss but also emotional and mental trauma, with some driven to suicide.
“If this doesn’t concern you directly, it concerns someone you know. If you’re not affected, you may be infected. We must act now,” he said. He recalled similar Ponzi operations in the 1990s like ‘Omana’ in Port Harcourt , Rivers State, where victims lost fortunes to unregulated scams. We saw suicides then. We’re seeing them again now. It’s tragic and unacceptable.”
Akpabio endorsed the motion fully, calling for a national campaign on financial education and scam awareness across Nigeria’s geopolitical zones. “We must act to stop more Nigerians from committing suicide,” he warned.
The Senate expressed shock that CBEX operated openly and at such scale without intervention from any regulatory body, including the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), or the Economic and Financial Crimes Commission (EFCC).
In his lead debate, Abiru noted that CBEX exploited aggressive social media campaigns, referral incentives, and celebrity endorsements to lure unsuspecting investors. “The purpose of this investigation is not only to uncover what went wrong with CBEX, but to design a framework that will protect the financial wellbeing of Nigerians going forward.”
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“This is not just about CBEX. It’s about rebuilding public trust and ensuring that Nigerians are never this vulnerable again.”
Other senators weighed in on the growing sophistication of Ponzi scheme operators, warning that Nigeria’s high youth unemployment, poor financial literacy, and lack of oversight make citizens increasingly vulnerable. They also queried the regulatory agencies for failing to stop the scam before it happens.
In his contribution, Abdul Ningi invoked Section 14(b) of the Constitution, reminding colleagues that the security and welfare of the people is the primary purpose of government.
“Our financial system is being gamed. If we don’t act decisively, more lives and livelihoods will be lost,” Ningi warned.
Adamu Aliero added to the debate, raising concern over fintech platforms operating under the guise of innovation while engaging in fraudulent practices. “The CBN must explain what safeguards it has in place,” he said.
Speaking on the psychological damage caused by these scams, Sadiq Umar stated, “People have lost everythin:savings, businesses, families. Some have taken their lives. This is beyond economics. It’s a national emergency.”
The motion also noted that the Senate is empowered under Section 88 of the Constitution to investigate the conduct of any person or agency tasked with executing federal laws. The Lawmakers said the upcoming investigative hearing would allow stakeholders including victims, regulators, cybersecurity experts, and enforcement agencies to present testimonies and recommend reforms.
The Senate’s resolution aims to uncover regulatory failures, close legal loopholes, and establish stronger mechanisms for public protection, real-time financial oversight, and accountability.
