*Lawmakers blame regulatory failures, warn of rising suicides and public distrust
WorldStage Newsonline– The Senate on Wednesday launched a sweeping investigation into the rise of Ponzi schemes in the country, following the catastrophic collapse of Crypto Bullion Exchange (CBEX), a digital investment platform that allegedly defrauded Nigerians of over ₦1.3 trillion.
Described as one of the most devastating financial scams in Nigeria’s history, the CBEX saga has triggered widespread outrage among lawmakers, who say it poses a clear threat to national security, economic stability, and public trust in government institutions.
The motion, jointly sponsored by Senators Mukhail Adetokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), received unanimous support on the Senate floor, with lawmakers from across party lines condemning the systemic failures that allowed such platforms to flourish unchecked.
Presenting the motion, Senator Abiru detailed how CBEX exploited weak regulatory oversight by the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC) to lure millions of Nigerians into a financial trap.
Abiru said, “Over ₦1.3 trillion 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,”
Abiru warned that the fallout includes depression, suicides, and a growing mistrust in legitimate financial institutions.
Other senators echoed his concerns. Senator Tahir Monguno (Borno North) described the situation as “alarming,” and called for stronger laws and enforcement to prevent further exploitation.
“These operators prey on vulnerable and gullible citizens. Some victims have died by suicide. It is time we acted decisively,” Monguno said.
Senator Sadiq Suleiman Umar (Kwara North) emphasized the public’s expectation of protection from government agencies, urging regulatory bodies to fulfill their mandates effectively.
Senator Solomon Adeola (Ogun West) pointed to gaps in Nigeria’s fintech regulations, warning that unregulated digital platforms continue to exploit Nigerians under the guise of innovation.
“It’s not just Ponzi schemes. There are many shady online payment platforms hiding under fintech buzzwords. The CBN must explain what safeguards are in place,” Adeola said.
Senator Abdul Ningi (Bauchi Central) urged the National Assembly to invoke its constitutional powers under Sections 88 and 14 of the 1999 Constitution to hold regulatory agencies accountable.
Senate President Godswill Akpabio, lending his voice to the motion, recalled a personal experience with a failed Ponzi scheme in Port Harcourt during the 1990s.
He said the CBEX crisis is history repeating itself but only now on a far more devastating scale.
Akpabio said, “₦1.3 trillion gone. Students, civil servants, and pensioners have been affected. This is an emergency.”
To tackle the problem, the Senate President endorsed calls for public hearings and nationwide financial education campaigns.
In its resolution, the Senate mandated a joint probe by its Committees on Capital Market; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT & Cybersecurity.
The lead committee will conduct public investigative hearings and is expected to submit its findings within four weeks.
The inquiry will not only scrutinize the CBEX collapse but also examine the wider Ponzi ecosystem, regulatory lapses, and recommend legal and administrative reforms.
As the motion passed unopposed, Senate President Akpabio declared:
“We cannot sit back while Nigerians are being robbed blind. We must act to prevent more suicides, restore trust, and reclaim our economy from digital predators.”
