The Nigerian Senate, on Wednesday, directed its joint Committees on Capital Market; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT & Cyber Security to embark on a comprehensive investigation into the operations of Ponzi schemes across all geopolitical zones of the country.

 

This decision followed the 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 (APC, Lagos East) and Osita Izunaso (APC, Imo West) during plenary.

 

While presenting the motion, Senator Abiru expressed deep concern over the rising sophistication of Ponzi scheme operators in Nigeria and the grave economic and psychological toll their fraudulent activities continue to inflict on unsuspecting citizens. He emphasized the urgent need for widespread public sensitization to prevent further exploitation, especially among vulnerable groups.

 

Abiru, who chairs the Senate Committee on Banking, Insurance and Other Financial Institutions, called attention to the failure of regulatory agencies to stop CBEX—a digital investment platform that deceived millions of Nigerians with promises of unrealistic returns, only to collapse and disappear with over ₦1.3 trillion in investor funds. The CBEX case, he noted, is now one of the most damaging financial scams in Nigerian history.

 

He also recalled past scams such as MMM Nigeria and MBA Forex, warning that the unchecked rise of unregulated investment platforms continues to wreak havoc on families and the national economy. The senator pointed to contributing factors such as high youth unemployment, pervasive poverty, low financial literacy, and limited access to formal investment channels.

 

Despite its size and visibility, CBEX reportedly operated without interference from key regulatory bodies such as the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).

 

Abiru cited Section 88 (1) (a) and (b) of the 1999 Constitution (as amended), which empowers the National Assembly to investigate the conduct of public officials and agencies in matters of national importance. He called for urgent legislative and administrative reforms to close the loopholes that allowed CBEX and similar platforms to operate unchecked.

 

In his remarks, Senate President Godswill Akpabio commended the motion’s sponsors, recalling his own encounter with a fraudulent investment scheme in the 1990s. He charged the joint committees to conduct a thorough investigation and submit their findings within four weeks.