In response to growing concerns over fraudulent investment platforms, the Nigerian Senate has launched a sweeping investigation into the surge of Ponzi schemes exploiting millions of citizens, with a spotlight on the recent collapse of Crypto Bridge Exchange (CBEX), which reportedly wiped out over ₦1.3 trillion in investor funds.
Lawmakers expressed outrage during Wednesday’s plenary, attributing the rise of such scams to regulatory inaction and lapses within financial oversight agencies. They argued that unchecked digital finance operations are exposing citizens to economic ruin and emotional distress, including an increase in suicide rates linked to lost savings.
Senators across party lines supported the motion, stressing that financial regulators must be held accountable for failing to protect the public. There were calls to tighten digital finance regulations, vet fintech operators more rigorously, and overhaul the legal framework surrounding online investments.
Senate President Godswill Akpabio described the issue as deeply personal, recounting his own experience with a failed scheme in the 1990s. He warned that without immediate intervention, more lives could be lost, and trust in Nigeria’s financial system further eroded.
A joint committee has been set up to lead a four-week investigation, which will extend beyond CBEX to examine wider systemic issues in Nigeria’s digital financial space. The committee is expected to conduct public hearings, scrutinise oversight bodies, and recommend urgent reforms aimed at safeguarding the economy and restoring public confidence.