N1.3trn Fraud: Senate Probes CBEX, Others

The Senate has ordered a far-reaching investigative hearing into the operations of Ponzi and fraudulent investment schemes in the country, following the collapse of Crypto Bullion Exchange (CBEX).

This digital company allegedly defrauded Nigerians of over ₦1.3 trillion (approx. $847 million).

The resolution was adopted after a motion jointly sponsored by Senators Mukhail Abiru (Lagos East) and Osita Izunaso (Imo West) was presented and unanimously supported during plenary yesterday in Abuja.

Lawmakers expressed outrage over what they described as gross regulatory failure by oversight institutions that allowed CBEX and similar platforms to operate unchecked.

“Despite CBEX operating on a massive scale, there was no intervention. That’s a glaring failure of oversight,” Senator Abiru said, calling attention to the silence of financial regulators during the scheme’s rise.

The Senate called the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU) as agencies that failed to detect or prevent the fraudulent operation, which gained popularity through flashy social media ads, celebrity endorsements, and referral schemes.

Senator Sadiq Umar (Kwara North) warned that the human toll of such frauds was devastating beyond the economic losses. “Victims have lost everything—some to depression, others to suicide. We can’t keep letting this happen. Regulators must be held accountable.”

Senator Adamu Aliero (Kebbi Central) pointed to a disturbing trend where unlicensed fintech companies disguise scams under the cloak of innovation. “The CBN must explain what protections are in place. What we have isn’t working,” he said.

Senator Abdul Ningi (Bauchi Central) emphasised the government’s constitutional duty to protect its citizens’ welfare, warning that the financial sector was being “gamed at the expense of ordinary Nigerians.”

In an emotional address, Senate President Godswill Akpabio drew parallels with Ponzi collapses from the 1990s, referencing a notorious scam known as Omana in Port Harcourt, where victims’ funds were lost to fraud and decay.

“They didn’t even know where to store the money—just stashed it in bags, stuffed warehouses with cash, and rats ate through the bundles,” Akpabio recalled. “We saw suicides then. We’re seeing them again. This is a national emergency.”

Akpabio urged senators to support nationwide financial literacy campaigns, warning: “If this hasn’t affected you, it has affected someone you know. If you’re not affected, you may already be infected. We must act.”

The Senate mandated its Joint Committees on Capital Market, Banking, Insurance and Other Financial Institutions, Anti-Corruption and Financial Crimes, and ICT and Cybersecurity to conduct a comprehensive probe into the operations of Ponzi schemes in Nigeria.

The committees are expected to hold public hearings across Nigeria’s geopolitical zones, gather testimonies from victims, and summon top regulatory agencies for questioning.

A final report is expected within four weeks, which may include recommendations for amending financial laws, strengthening the regulation of fintech and crypto assets, criminally prosecuting fraudsters, and restoring trust in financial oversight agencies.

“This is no longer just an economic issue,” Senator Osita Izunaso (Imo West) concluded. “It’s a matter of national security and public health. We must respond with the seriousness it deserves.”