The Nigerian Senate has launched a sweeping investigation into the operations of Ponzi schemes across the country, following the collapse of the Crypto Bullion Exchange (CBEX), which allegedly defrauded investors of over ₦1.3 trillion (approximately $847 million).
The resolution was adopted during plenary after a motion sponsored by Senator Adetokunbo Abiru (APC, Lagos East) and co-sponsored by Senator Osita Izunaso (APC, Imo West).
The Senate mandated a joint committee comprising the Committees on Banking, Insurance and Other Financial Institutions; Capital Market; Anti-Corruption and Financial Crimes; and ICT and Cybercrime to conduct a full investigation, including public hearings across Nigeria’s six geo-political zones. The committee is expected to report back within four weeks.
‘One of the worst financial scams in Nigeria’s history’
In his lead debate, Senator Abiru cited the devastating impact of past fraudulent schemes such as MMM Nigeria (2016) and MBA Forex (2020), but described the CBEX incident as “particularly troubling.”
“It lured millions of Nigerians with promises of outrageous returns and collapsed abruptly, resulting in one of the most devastating financial scams in the nation’s history,” Abiru said.
He expressed dismay over the inaction of key regulatory bodies—including the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU)—despite the scale and visibility of CBEX’s operations.
Abiru warned that digital Ponzi schemes are thriving due to a combination of factors including high youth unemployment, widespread poverty, low financial literacy, and restricted access to credible investment platforms.
Senators demand accountability
Senate Chief Whip Tahir Monguno (APC, Borno North) described the CBEX saga as “alarming,” and emphasized the need to hold regulatory agencies accountable for their failure to act.
Senator Sadiq Umar (APC, Kwara North) echoed this sentiment, stressing the importance of protecting Nigerians from such financial predators and restoring trust in the financial system.
Senator Olamilekan Adeola (APC, Ogun West), Chairman of the Senate Committee on Appropriations, criticized regulators for what he called “unacceptable lapses.”
“Ponzi operators have taken advantage of our weak regulatory framework. It is unacceptable that billions of naira are lost while regulatory agencies remain passive. We must act decisively,” Adeola said.
Senate to invoke oversight powers
The Senate also resolved to use its constitutional oversight authority to investigate the regulatory failures that allowed CBEX—and similar platforms—to operate unchecked. Lawmakers are expected to recommend stronger mechanisms to prevent future financial scams.
As public outrage grows over the scale of the CBEX collapse, the Senate’s action signals the beginning of a broader effort to tighten regulation, improve public awareness, and hold complicit actors accountable in Nigeria’s fast-evolving digital finance space.
