The Senate has directed a full-scale investigation into Ponzi scheme operations across the country, mandating five of its committees to conduct public hearings in all six geopolitical zones.
The joint committees Capital Market; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT & Cyber Security were tasked with the assignment after lawmakers debated 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).
While presenting the motion, Abiru warned of the growing technical expertise of fraudsters behind Ponzi operations.
He said there is an urgent need to educate the public and shield citizens from exploitation.
He called attention to the unchecked growth of fraudulent platforms like CBEX, urging a review of the regulatory system. According to him, “the economic wellbeing and financial security of Nigerian citizens are essential pillars of national stability and growth, and that it is the duty of the government to protect the populace from exploitative, predatory and fraudulent financial practices and schemes that threaten their livelihoods.”
As Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Abiru expressed worry over the sharp increase in fake investment outfits.
He listed previous cases like MMM Nigeria in 2016 and MBA Forex in 2020, saying such schemes had wiped out savings, destabilised families, and pushed some victims to depression and suicide.
He referenced the case of CBEX, a crypto-based platform that promised huge returns and collapsed suddenly, with investors losing over N1.3 trillion. Abiru described it as “one of the most devastating financial scams in the country’s history.”
He also questioned how such a platform operated freely despite its scale and public visibility.
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“Despite the scale of operations and visibility of CBEX,” Abiru said.
“It operated for an extended period without facing sanctions by either the Securities and Exchange Commission, SEC, the Central Bank of Nigeria, CBN, the Nigerian Financial Intelligence Unit, NFIU or the Economic and Financial Crimes Commission, EFCC.”
He blamed the spread of these schemes on a mix of economic hardship, limited access to formal investment options, low financial literacy, and regulatory lapses.
Citing constitutional provisions, he reminded the Senate that it has the power to probe such failures and recommend reforms.
“Section 88 (1) (a) and (b) of the Constitution (as amended) empowers the National Assembly to conduct such investigations,” Abiru noted.
Senate President Godswill Akpabio, in his comments, recounted his own experience with a failed investment in the early 1990s.
He praised the sponsors of the motion and urged the committees to carry out a detailed investigation. He instructed them to report back within four weeks.