The Nigerian Senate has directed a joint committee to launch a thorough investigation into the growing number of Ponzi schemes in the country.
This follows the dramatic collapse of Crypto Bullion Exchange (CBEX), which is believed to have swindled investors out of more than ₦1.3 trillion.
The resolution came in response to a motion presented by Senator Adetokunbo Abiru (Lagos East), who expressed alarm at the unchecked proliferation of fraudulent investment platforms.
He cited past schemes like MMM Nigeria (2016) and MBA Forex (2020), alongside CBEX, as examples of ventures that promised massive returns on digital assets but ended in losses for millions.
Lawmakers voiced serious concerns over the human impact of the latest collapse.
They warned that CBEX’s sudden disappearance had caused severe financial hardship, emotional trauma, and even led to cases of suicide among victims.
During the session, senators also condemned the apparent failure of financial regulators to act swiftly, despite CBEX’s widespread visibility and operations.
They questioned the silence of the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).
The Senate has tasked the joint committee to conduct a public hearing in the coming weeks and deliver a report within a month.
Back in April, the EFCC had already issued warnings about the rising threat of Ponzi schemes in Nigeria.
Speaking on The Morning Brief on Channels Television, EFCC spokesperson Dele Oyewale said:
“You’ll recall that on March 11 this year, the Executive Chairman of the EFCC, Mr. Ola Olukoyede, had cause to instruct us to alert Nigerians about 58 Ponzi scheme companies; we came out with a list–that shows that we’re proactive and we have our hands on what is happening.”
He highlighted the agency’s ongoing efforts to inform the public about the dangers posed by fraudulent investment platforms.
In a related legal move, Justice Emeka Nwite of the Federal High Court, Abuja, on April 25, granted the EFCC permission to arrest and hold six individuals linked to CBEX.
They are facing allegations of orchestrating a scam worth over $1 billion.
According to EFCC counsel Fadila Yusuf, the anti-corruption agency had applied for the court’s approval to detain the suspects while it completes its investigation and prepares for possible prosecution.
The EFCC’s application requested two key orders: one to issue arrest warrants and another to keep the suspects in EFCC custody during the investigative process.
The agency emphasized that these steps fall within its legal mandate to detect, investigate, and prevent financial crimes.
