The Nigerian Senate has launched a wide-ranging investigation into the surge of Ponzi schemes in the country, following the collapse of Crypto Bridge Exchange (CBEX), a digital investment platform accused of defrauding Nigerians of over N1.3 trillion.
The scheme (CBEX) has been described as one of the largest financial frauds in Nigeria’s history. Lawmakers cited institutional failures and regulatory lapses as key enablers of such scams, warning that the consequences—ranging from suicides to public mistrust—now threaten the nation’s financial and social stability.
The motion was jointly sponsored by Senators Tokunbo Abiru, Osita Izunaso, and received unanimous support from senators across party lines.
While presenting the motion, Abiru stated, “Over N1.3tn was lost to CBEX alone. This is not an isolated case. It is part of a disturbing pattern dating back to MMM in 2016 and MBA Forex in 2020. Nigerians are being robbed repeatedly.”
He blamed the situation on weak regulatory oversight by the Central Bank of Nigeria, Securities and Exchange Commission, Nigerian Financial Intelligence Unit, and Economic and Financial Crimes Commission.
Senator Tahir Monguno, Borno North, described the situation as “alarming,” adding, “We must strengthen our laws and ensure offenders face the full weight of justice. Enough is enough.”
Backing the motion, Senator Sadiq Umar, Kwara North, said, “Regulatory bodies must wake up. People trust them to act—not sleep.”
Senator Solomon Adeola, Ogun West, emphasized that the challenge goes beyond Ponzi schemes. He said, “We’re now seeing unlicensed fintech firms hiding under digital innovation. The CBN must tell us what safeguards exist and how many of these platforms are properly vetted.”
Senator Abdul Ningi, Bauchi Central, urged the National Assembly to invoke its powers under Sections 88 and 14 of the 1999 Constitution to hold relevant agencies accountable.
In a personal revelation, Senate President Godswill Akpabio disclosed that he was once a victim of a Ponzi scheme in Port Harcourt in the 1990s. He said, “History is repeating itself, only now with even more devastating consequences. N1.3tn gone—just like that. This is an emergency. Families are ruined. Lives have been lost. We must act swiftly and decisively.”
Backing calls for public hearings and financial education, Akpabio added, “We cannot sit back while Nigerians are being robbed blind. We must act to prevent more suicides, restore trust, and reclaim our economy from digital predators.”
The Senate resolved to set up a multi-committee probe involving the Committee on Capital Market, Committee on Banking, Insurance and Other Financial Institutions, Committee on Anti-Corruption and Financial Crimes, and Committee on ICT & Cybersecurity.
The lead committee is expected to hold public hearings and submit its report within four weeks. The investigation will not be limited to CBEX but will assess Nigeria’s broader digital financial landscape to identify loopholes and propose robust legal and regulatory reforms.
