Senate Probes ₦1.3 Trillion CBEX Fraud, Declares Emergency on Ponzi Schemes in Nigeria
The Nigerian Senate has launched a major investigation into the growing rise of Ponzi schemes across the country, following the collapse of Crypto Bridge Exchange (CBEX) a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion.
Lawmakers described the CBEX case as one of Nigeria’s biggest financial scams in history, warning that the impacts go beyond financial losses to include mental health crises and deepening public mistrust in the nation’s institutions.
The motion to investigate the scandal was sponsored by Senators Mukhail Adetokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), and received full support from lawmakers across party lines. The Senate declared that urgent action must be taken to prevent future losses and restore public confidence.
While presenting the motion, Senator Abiru said CBEX was able to thrive by exploiting weak regulation and oversight from key financial watchdogs such as 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).
“Over ₦1.3 trillion was lost to CBEX alone. This is not an isolated case,” Abiru said. “It is part of a disturbing pattern dating back to MMM in 2016 and MBA Forex in 2020. Nigerians are being robbed repeatedly.”
He added that many victims are now suffering from depression, mental breakdowns, and in some tragic cases, suicide.
Senator Tahir Monguno (Borno North) called the situation “alarming,” insisting that laws must be tightened and criminals brought to justice. “Enough is enough,” he said.
Senator Sadiq Umar (Kwara North) noted that Nigerian regulators had failed the public, saying, “Regulatory bodies must wake up. People trust them to act, not sleep.”
Senator Solomon Adeola (Ogun West) raised concerns about unlicensed fintech companies hiding under the label of digital innovation. “The CBN must tell us what safeguards exist. How many of these platforms have been properly vetted?” he asked.
Senator Abdul Ningi (Bauchi Central) urged the National Assembly to invoke its constitutional powers under Sections 88 and 14 of the 1999 Constitution to compel accountability from all financial regulators involved.
In a shocking revelation, Senate President Godswill Akpabio admitted that he once fell victim to a Ponzi scheme in Port Harcourt back in the 1990s.
“History is repeating itself, only now with even more devastating consequences,” Akpabio said. “₦1.3 trillion gone, just like that. This is an emergency. Families are ruined. Lives have been lost. We must act swiftly and decisively.”
He backed the call for public hearings and nationwide financial education campaigns to protect Nigerians from falling prey of any Ponzi Schemes again. “We cannot sit back while Nigerians are being robbed blind,” he added.
The Senate has now directed a multi-committee probe involving the Committees on Capital Market, Banking, Insurance and Other Financial Institutions, Anti-Corruption and Financial Crimes, and ICT & Cybersecurity. The lead committee is expected to hold public hearings and submit a report within four weeks.
The investigation will extend beyond CBEX, with the Senate planning a full sweep of the digital financial space to identify deeper loopholes and propose strong reforms to prevent future scams.
