The Nigerian Senate on Wednesday launched a sweeping investigation into the alarming rise of Ponzi schemes in the country, following the catastrophic collapse of Crypto Bridge Exchange (CBEX) — a digital investment platform that allegedly defrauded Nigerians of over ₦1.3 trillion.
The scheme has been described by lawmakers as one of the largest financial scams in Nigeria’s history, with far-reaching consequences including suicides, depression, and growing distrust in the nation’s financial system.
A Senate United Against Fraud
The motion, co-sponsored by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), received unanimous support across party lines. Presenting the motion, Senator Abiru lamented regulatory failures by major institutions such as the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU).
“₦1.3 trillion was lost to CBEX alone. This is not an isolated case. It continues a disturbing trend that includes MMM and MBA Forex,” Abiru said.Senator Tahir Monguno (Borno North) called the situation “alarming,” while Senator Sadiq Umar (Kwara North) said regulatory bodies had failed Nigerians: “People trust them to act, not sleep.”
Senator Solomon Adeola (Ogun West) expressed concern over unlicensed fintech platforms, warning that many exploit digital innovation to bypass oversight.
Senator Abdul Ningi (Bauchi Central) urged the Senate to invoke constitutional powers under Sections 88 and 14 of the 1999 Constitution to enforce accountability.
Akpabio: “I Was Once a Victim”
In a deeply personal moment, Senate President Godswill Akpabio revealed he too had once fallen victim to a Ponzi scheme in Port Harcourt in the 1990s. “History is repeating itself, only now with even more devastating consequences. ₦1.3 trillion gone—just like that. Families are ruined. Lives have been lost. This is an emergency,” Akpabio said.
He backed calls for public hearings and nationwide financial literacy campaigns, emphasizing that the Senate must act “swiftly and decisively” to restore public trust and protect citizens from further exploitation.
Senate Action Plan
The Senate resolved to:
1. Launch a multi-committee investigation involving: Capital Market Committee, Banking, Insurance and Other Financial Institutions Committee, Anti-Corruption and Financial Crimes Committee and ICT & Cybersecurity Committee.
2. Hold public investigative hearings.
3. Submit a report within four weeks Propose sweeping legal and regulatory reforms.
The probe will extend beyond CBEX, aiming to uncover broader systemic lapses in Nigeria’s digital financial space and establish stronger safeguards against future fraud.
