SENATE LAUNCHES PROBE INTO N1.3 TRILLION PONZI SCHEME, BLAMES REGULATORY FAILURE
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By Aishat Momoh. O.
The Nigerian Senate has launched a sweeping investigation into the alarming rise of Ponzi schemes in the country, following the collapse of Crypto Bridge Exchange (CBEX), a digital investment platform accused of defrauding Nigerians of over N1.3 trillion.
Lawmakers on Wednesday unanimously supported a motion jointly sponsored by Senators Mukhail Adetokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), condemning the systemic regulatory failures that allowed such a massive scam to thrive unchecked.
Presenting the motion, Senator Abiru revealed that CBEX exploited lapses in oversight by key financial regulators, 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).
“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 said.
The lawmaker further warned that the fallout from such schemes now includes depression, suicides, and a growing public mistrust in Nigeria’s financial system.
Echoing this concern, Senator Tahir Monguno (Borno North) described the situation as “alarming,” and called for stronger laws and severe punishment for perpetrators. “Enough is enough,” he declared.
Senator Sadiq Umar (Kwara North) decried the failure of regulatory bodies, stressing that they must be held accountable. “People trust them to act, not sleep,” he said.
Raising further concerns, Senator Solomon Adeola (Ogun West) pointed to the proliferation of unlicensed fintech companies exploiting digital innovation to swindle unsuspecting citizens. “The CBN must come clean on how many of these platforms are properly vetted,” he added.
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 erring agencies.
In an emotional moment, Senate President Godswill Akpabio revealed that he had once been a victim of a Ponzi scheme in the 1990s. “History is repeating itself, only now with even more devastating consequences. N1.3 trillion gone, just like that. Families are ruined. Lives have been lost. We must act swiftly and decisively,” he said.
Akpabio endorsed calls for nationwide financial literacy campaigns and public hearings, insisting that the Senate must act to restore trust in Nigeria’s financial system and protect citizens from further exploitation.
The Senate resolved to constitute 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 probe will not be limited to CBEX, but will extend across Nigeria’s digital financial space to uncover systemic weaknesses and propose sweeping legal and regulatory reforms.
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