The Senate has mandated a joint committee to investigate the alarming proliferation of Ponzi schemes across the country, following the collapse of the Crypto Bullion Exchange (CBEX), which reportedly defrauded investors of over ₦1.3 trillion.

The decision came after a motion sponsored by Senator Adetokunbo Abiru (Lagos East), who expressed deep concern over the unchecked spread of fraudulent investment platforms. 

He cited examples such as the infamous MMM Nigeria (2016), MBA Forex (2020), and most recently CBEX, which lured millions of Nigerians with promises of high returns on digital assets.

During debate, lawmakers warned that CBEX’s collapse had triggered devastating financial and psychological consequences, with some victims driven into depression, family breakdowns, and, in some tragic cases, suicide.

The Senate expressed dismay that CBEX was able to operate unchecked for months despite its wide online visibility and large-scale activities, with no apparent intervention from regulatory agencies such as 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).

The joint committee is expected to hold a public hearing in the coming weeks and submit its findings within one month.

The EFCC, in April, had warned Nigerians against investing in Ponzi schemes. 

EFCC spokesperson Dele Oyewale, speaking on Channels Television’s ‘The Morning Brief,’ said the Commission had taken steps to enlighten the public on the dangers of such criminal enterprises.

“You’ll recall that on March 11 this year, the Executive Chairman of the EFCC, Mr Ola Olukoyede, instructed us to alert Nigerians about 58 Ponzi scheme companies. 

“We released a list which shows we’re proactive and keeping close watch on developments,” Oyewale said.

On April 25, Justice Emeka Nwite of the Federal High Court, Abuja, granted the EFCC’s request to arrest and detain six promoters of CBEX over alleged investment fraud amounting to over $1 billion.

The EFCC, through counsel Fadila Yusuf, sought the court’s leave to detain the accused pending conclusion of investigations and possible prosecution. 

The Commission’s ex-parte motion requested two key reliefs: issuance of arrest warrants and remand of the suspects in EFCC custody during ongoing investigations.

The EFCC outlined four grounds for the request, citing its statutory duty to investigate, prevent, and detect financial crimes.