The Senate has directed a joint committee to investigate the alarming rise of Ponzi schemes in Nigeria, following the collapse of the Crypto Bullion Exchange (CBEX), which allegedly defrauded investors of over ₦1.3 trillion.
The resolution followed a motion by Senator Adetokunbo Abiru (Lagos East), who raised alarm over the growing number of fraudulent investment platforms such as MMM Nigeria (2016), MBA Forex (2020), and now CBEX. These schemes, he said, have devastated the lives of millions of Nigerians by promising unrealistic returns on digital investments.
During the debate, lawmakers highlighted the psychological and financial toll of the CBEX collapse, noting it had led to depression, broken homes, and in some cases, suicide. The Senate expressed dismay that CBEX operated unchecked despite its massive scale and online presence, without any intervention from regulatory bodies like the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Financial Intelligence Unit (NFIU), or the Economic and Financial Crimes Commission (EFCC).
The joint Senate committee will conduct a public hearing and is expected to submit its findings within one month.
EFCC’s Response and Legal Action
The EFCC, which had earlier warned Nigerians about 58 suspicious investment companies, confirmed it is already investigating CBEX. Its spokesperson, Dele Oyewale, said the Commission had been proactive in sensitising the public.
In April, Justice Emeka Nwite of the Federal High Court, Abuja, approved the EFCC’s request to arrest and detain six CBEX promoters in connection with an alleged $1 billion fraud. The EFCC, through its counsel Fadila Yusuf, secured court permission to keep the suspects in custody pending the conclusion of investigations.
The agency stressed its statutory mandate to prevent and detect financial crimes and pledged to pursue the case to ensure justice for victims.