The Senate on Wednesday mandated its relevant committees to investigate rising cases of Ponzi schemes in the country.
The resolution of the red chamber followed its consideration and adoption of a motion titled: “Investigative Hearing into the operations of Ponzi Schemes in Nigeria, with particular reference to the recent Crypto Bullion Exchange (CBEX) incident.”
The motion was sponsored by Senators Adetokunbo Abiru and Osita Izunaso.
A scandal broke out recently following the catastrophic collapse of Crypto Bullion Exchange (CBEX), a digital investment platform that allegedly defrauded Nigerians of over N1.3 trillion.
Described as one of the most devastating financial scams in Nigeria’s history, the CBEX saga had triggered widespread outrage among lawmakers, who say it poses a clear threat to national security, economic stability, and public trust in government institutions.
Senator Abiru in his lead debate explained 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 N1.3 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 warned that the result included depression, suicides, and a growing mistrust in legitimate financial institutions.
Lawmakers from across party lines, in their contributions, condemned the systemic failures that allowed such platforms to flourish unchecked.
They corroborated Abiru’s assertion on the dangers of Ponzi schemes in the country.
Senator Tahir Monguno (Borno North) described the situation as “alarming,” and called for stronger laws and enforcement to prevent further exploitation.
“These operators prey on vulnerable and gullible citizens. Some victims have died by suicide. It is time we acted decisively,” Monguno said.
Senator Sadiq Suleiman Umar (Kwara North) emphasised the public’s expectation of protection from government agencies, urging regulatory bodies to fulfil their mandates effectively.
Senator Solomon Adeola (Ogun West) noted gaps in Nigeria’s fintech regulations, warning that unregulated digital platforms continue to exploit Nigerians under the guise of innovation.
“It’s not just Ponzi schemes. There are many shady online payment platforms hiding under fintech buzzwords. The CBN must explain what safeguards are in place,” Adeola said.
Senator Abdul Ningi (Bauchi Central) urged the National Assembly to invoke its constitutional powers under Sections 88 and 14 of the 1999 Constitution to hold regulatory agencies accountable.
Senate President Godswill Akpabio recalled a personal experience with a failed Ponzi scheme in Port Harcourt during the 1990s.
He said the CBEX crisis is history repeating itself, but only now on a far more devastating scale.
Akpabio said, “N1.3 trillion gone. Students, civil servants, and pensioners have been affected. This is an emergency.”
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Akpabio supported calls for public hearings and nationwide financial education campaigns.
In its resolution, the Senate mandated its Committees on Capital Market, Banking, Insurance and Other Financial Institutions, Anti-Corruption and Financial Crimes, and ICT & Cybersecurity to carry out the investigation
The lead committee will conduct public investigative hearings and is expected to submit its findings within four weeks.
The inquiry will not only scrutinise the CBEX collapse but also examine the wider Ponzi ecosystem, regulatory lapses, and recommend legal and administrative reforms.
Akpabio said, “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.”
