Following the disastrous failure of Crypto Bridge Exchange, a digital investment platform that reportedly defrauded Nigerians of over N1.3 trillion, the Senate on Wednesday began a comprehensive investigation into the growth of Ponzi schemes in the nation.
One of the biggest financial scams in the history of the country is the Ponzi scheme.
The senators 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 motion, jointly sponsored by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), received unanimous support on the Senate floor, with lawmakers across party lines condemning the systemic failures that allowed such platforms to flourish unchecked.
Presenting the motion, Abiru detailed how CBEX exploited weak regulatory oversight by the Central Bank of Nigeria, the Securities and Exchange Commission, the Nigerian Financial Intelligence Unit, and the Economic and Financial Crimes Commission to lure 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 further warned that the fallout includes depression, suicides, and a growing mistrust in legitimate financial institutions.
Senator Tahir Monguno (Borno North) called the situation “alarming,” adding, “We must strengthen our laws and ensure offenders face the full weight of justice. Enough is enough.”
Backing the motion, Senator Sadiq Umar (Kwara North) said the Nigerian public had been failed by institutions meant to protect them. READ MORE
