The Nigerian Senate on Wednesday opened a far-reaching investigation into the alarming spread of Ponzi-style investment schemes across the country, in the wake of the staggering collapse of Crypto Bridge Exchange (CBEX), a digital platform accused of defrauding Nigerians of over ₦1.3 trillion.
Described as one of the largest financial scams in Nigeria’s history, the CBEX debacle has laid bare deep regulatory fissures and triggered a national outcry. Senators warned that the proliferation of such schemes, enabled by weak oversight and a failing regulatory ecosystem, now poses a grave threat to Nigeria’s social and economic fabric—fueling depression, suicide, and widespread distrust in the formal financial system.
The motion, tabled by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), drew unanimous backing across party lines, with legislators condemning what they characterised as systemic inertia from key watchdog institutions, including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).
“This is not an isolated event,” Abiru told his colleagues while presenting the motion. “Over ₦1.3 trillion was lost to CBEX alone. But this is part of a pattern—MMM in 2016, MBA Forex in 2020, and now CBEX. Nigerians are being repeatedly exploited under the watch of our regulators.”
He painted a grim picture of the emotional and psychological toll of these financial traps, highlighting a surge in suicide cases and mass disillusionment with legitimate banking institutions.
Senator Tahir Monguno (Borno North) labelled the situation “alarming,” calling for urgent legislative and judicial response. “Enough is enough,” he said. “We must overhaul our financial laws and ensure those behind these schemes are brought to justice.”
Senator Sadiq Umar (Kwara North) accused regulatory agencies of gross dereliction of duty: “People rely on these institutions to protect them. Instead, they’re asleep at the wheel.”
His concerns were echoed by Senator Solomon Adeola (Ogun West), who warned of a broader crisis beyond Ponzi operators. “We’re now seeing a wave of unlicensed fintechs hiding behind buzzwords like innovation and digital disruption. Where are the CBN’s safeguards? How many of these platforms have been properly vetted?”
Senator Abdul Ningi (Bauchi Central) invoked the National Assembly’s powers under Sections 88 and 14 of the Constitution, urging parliament to compel accountability and transparency from the implicated agencies.
In a rare moment of candour, Senate President Godswill Akpabio revealed his own history as a victim of a Ponzi scam in Port Harcourt in the 1990s. “History is repeating itself, only this time, the damage is far greater,” he said. “₦1.3 trillion gone—just like that. This is an emergency. Families are ruined. Lives have been lost.”
Akpabio backed calls for public hearings and a nationwide financial literacy drive. “We cannot sit back while Nigerians are being robbed blind. We must act to restore public trust and reclaim our economy from digital predators,” he said.
The Senate resolved to constitute a multi-committee investigation, drawing members from its Committees on Capital Market; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT and Cybersecurity. The lead committee has been mandated to conduct public investigative hearings and submit its findings within four weeks.
The probe will extend beyond CBEX, casting a critical eye across Nigeria’s fast-expanding digital financial space to identify structural lapses and chart a course for sweeping legal and regulatory reform.
