Following the devastating collapse of the Crypto Bridge Exchange, a digital investment platform that allegedly defrauded Nigerians of over N1.3 trillion, the Senate began a comprehensive investigation on Wednesday into the rise of Ponzi schemes in the nation.
Some call the Ponzi scheme one of the biggest financial frauds in the nation’s history.
The lawmakers warned that the repercussions, which include an increase in suicide rates and a rise in public mistrust, now pose a threat to Nigeria’s social and economic stability.
They attributed the emergence of Ponzi-style investment schemes to regulatory shortcomings and inadequate financial oversight.
The Senate floor was unanimous in favour of the motion, which was co-sponsored by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West).
Lawmakers from all parties denounced the structural flaws that permitted these platforms to thrive unchallenged.
CBEX takes advantage of Nigeria’s regulatory lapses
During her motion presentation, Senator Abiru detailed how CBEX exploited the lax regulatory oversight by the Securities and Exchange Commission, the Nigerian Financial Intelligence Unit, the Central Bank of Nigeria, and the Economic and Financial Crimes Commission to deceive millions of Nigerians into a financial trap.
Abiru said, “Over N1.3tn 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,”
He also cautioned that the consequences include suicide, depression, and a rise in scepticism towards respectable financial institutions.
Call to strengthen regulatory laws
Senator Tahir Monguno of Borno North described the situation as “alarming,” stating that “we must strengthen our laws and ensure offenders face the full weight of justice. Enough is enough.”
Senator Sadiq Umar (Kwara North) supported the motion and claimed that the institutions intended to protect the Nigerian people had failed them.
“Regulatory bodies must wake up. People trust them to act—not sleep,” he said.
Ogun West Senator Solomon Adeola cautioned that the situation extends beyond Ponzi schemes.
“We’re now seeing unlicensed fintech firms hiding under digital innovation. The CBN must tell us what safeguards exist and how many of these platforms are properly vetted,” he said.
Holding regulatory agencies accountable
To hold regulatory agencies accountable, Senator Abdul Ningi (Bauchi Central) urged the National Assembly to exercise its constitutional authority under Sections 88 and 14 of the 1999 Constitution.
Godswill Akpabio, the Senate President, disclosed in a moment of introspection that he had previously been a victim of a failed Ponzi scheme in the 1990s in Port Harcourt, Rivers State.
“History is repeating itself, only now with even more devastating consequences,” Akpabio said. “N1.3tn gone—just like that. This is an emergency. Families are ruined. Lives have been lost. We must act swiftly and decisively.”
He cautioned, endorsing calls for nationwide financial literacy campaigns and public hearings, saying, “We cannot sit back while Nigerians are being robbed blind.”
He affirmed that action must be taken to stop more suicides, rebuild trust, and retake our economy from online predators.
Senate’s multi-committee probe
The Senate’s Committees on Capital Market, Banking, Insurance and Other Financial Institutions, Anti-Corruption and Financial Crimes, and ICT & Cybersecurity decided to form a multi-committee investigation.
The lead committee has four weeks to complete its report and hold public investigative hearings.
The upper chamber stated that the investigation will broaden its scope beyond CBEX to examine Nigeria’s digital financial sector in order to find systemic flaws and suggest comprehensive legal and regulatory changes.