The Senate on Wednesday launched a probe into the rise of Ponzi schemes in the country, following the collapse of Crypto Bridge Exchange (CBEX), a digital investment platform that allegedly fleeced Nigerians of over ₦1.3trn.
The Ponzi scheme has been described as one of the largest financial scams in the nation’s history.
The senators blamed the rise of Ponzi-style investment schemes on regulatory failures and weak financial oversight, warning that the ripple effects, including rising suicide rates and growing public mistrust, now threaten Nigeria’s social and economic stability
The motion, jointly sponsored by Senators Mukhail Adetokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), received unanimous support on the Senate floor, with lawmakers across party lines condemning the systemic failures that allowed such platforms to flourish unchecked.
Presenting the motion, Senator Abiru detailed how CBEX exploited weak regulatory oversight by 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) to lure millions of Nigerians into a financial trap.
Abiru said, “Over ₦1.3 trillion 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.”
Abiru further warned that the fallout includes depression, suicides, and a growing mistrust in legitimate financial institutions.
Senator Tahir Monguno (Borno North) called the situation “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 the Nigerian public had been failed by institutions meant to protect them. “Regulatory bodies must wake up. People trust them to act, not sleep.”
Senator Solomon Adeola (Ogun West) warned that the rot goes beyond Ponzi schemes. “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 activate its constitutional powers under Sections 88 and 14 of the 1999 Constitution to compel accountability from regulatory agencies.
Senate President Godswill Akpabio revealed that he had once fallen victim to a failed Ponzi scheme in Port Harcourt in the 1990s.
“History is repeating itself, only now with even more devastating consequences. ₦1.3 trillion gone, just like that. This is an emergency. Families are ruined. Lives have been lost. We must act swiftly and decisively,” Akpabio said.
He backed calls for public hearings and nationwide financial literacy campaigns, warning, “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 launch a multi-committee probe involving its Committees on Capital Market, Banking, Insurance and Other Financial Institutions, Anti-Corruption and Financial Crimes and ICT & Cybersecurity.
The lead committee is expected to conduct public investigative hearings and submit its report within four weeks.
The upper chamber noted that the investigation will go beyond CBEX, casting a wide net across Nigeria’s digital financial space to identify systemic lapses and propose sweeping legal and regulatory reforms.
The Punch
