Nigeria’s Senate has initiated a comprehensive investigation into the alarming rise of Ponzi schemes across the country. This action comes on the heels of the devastating collapse of Crypto Bridge Exchange (CBEX), a digital investment platform that reportedly defrauded Nigerians of over N1.3 trillion.

The Senate has described this Ponzi scheme as one of the largest financial scams in Nigeria’s history, highlighting the urgent need for action. Lawmakers blame the surge in these fraudulent schemes on regulatory failures and insufficient financial oversight, warning that their ripple effects threaten both Nigeria’s social fabric and economic stability. The fallout includes rising suicide rates and a deepening mistrust among the public toward legitimate financial institutions.

The investigation was propelled by a motion jointly sponsored by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West). The motion received support from all parties, with members condemning the systemic failures that have allowed such platforms to operate freely for too long.

During the presentation, Senator Abiru pointed out how CBEX exploited gaps in oversight by agencies, including the Central Bank of Nigeria, Securities and Exchange Commission, Nigerian Financial Intelligence Unit, and the Economic and Financial Crimes Commission. He cited that over N1.3 trillion was lost to CBEX alone, adding, “This is not an isolated incident. It’s part of a disturbing pattern dating back to schemes like MMM in 2016 and MBA Forex in 2020. Nigerians are being robbed repeatedly.”

He expressed concern over the broader societal impacts, including depression, suicides, and erosion of trust in authentic financial systems.

Senator Tahir Monguno (Borno North) described the situation as “alarming,” emphasising that Nigeria must strengthen its laws and ensure that offenders face the full consequences of justice. “Enough is enough,” he declared.

Supporting the motion, Senator Sadiq Umar (Kwara North) criticised the institutions tasked with safeguarding the populace, stating, “Our regulatory bodies must wake up. People trust them to act, not to sleep on the job.”

Senator Solomon Adeola (Ogun West) pointed out that the problem extends beyond Ponzi schemes alone. He warned about unlicensed fintech firms operating under the guise of digital innovation and pressed the Central Bank of Nigeria to reveal what safeguards are in place and how many of these platforms are properly vetted.

Meanwhile, Senator Abdul Ningi (Bauchi Central) urged the National Assembly to utilize its constitutional powers under Sections 88 and 14 of the 1999 Constitution to compel regulatory agencies to account for their oversight failures.

Reflecting on personal experience, Senate President Godswill Akpabio shared that he was once a victim of a Ponzi scheme in Port Harcourt during the 1990s. “History is repeating itself, only now with even more devastating consequences,” he stated. “N1.3 trillion gone — just like that. This is an emergency. Families are being destroyed, lives lost. We must act swiftly and decisively.”

He called for public hearings and nationwide financial literacy campaigns to combat the crisis. “We cannot sit back while Nigerians are being robbed blind,” Akpabio warned. “We must act to prevent more suicides, restore trust, and protect our economy from digital predators.”

The Senate has resolved to launch a multi-committee probe, involving key committees such as Capital Market, Banking, Insurance, and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT & Cybersecurity. The lead committee is expected to conduct public investigative hearings and deliver its report within four weeks.

This investigation will extend beyond CBEX, aiming to scrutinise Nigeria’s entire digital financial landscape. The goal is to identify systemic lapses and propose sweeping legal and regulatory reforms to curb future scams and restore public confidence.