Senate Launches Investigation Into Ponzi Schemes
The Senate has mandated a joint committee to investigate the alarming rise of Ponzi schemes across the country, following the collapse of the Crypto Bullion Exchange (CBEX), which has reportedly defrauded investors of over ₦1.3 trillion.
The decision followed a motion sponsored by Senator Adetokunbo Abiru (Lagos East).
In a motion, the lawmaker expressed deep concern over the unchecked spread of fraudulent investment schemes, including 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.
Lawmakers in a debate warned that CBEX’s collapse had devastating financial and psychological consequences, pushing victims into depression, family breakdowns, and in some tragic cases, suicide.
The Senate expressed shock that CBEX operated unchecked for months despite its large-scale activities and online visibility, with no timely 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 had in April said it warned Nigerians against investing in Ponzi schemes.
The spokesperson of the EFCC, Dele Oyewale, who spoke as a guest on Channels Television’s The Morning Brief, however, said that the Commission had taken steps to enlighten Nigerians about the dangers of the criminal schemes.
“You’ll recall that on March 11 this year, the Executive Chairman of the EFCC, Mr. Ola Olukoyede, had cause to instruct us to alert Nigerians about 58 Ponzi scheme companies; we came out with a list–that shows that we’re proactive and we have our hands on what is happening,” Oyewale had said.
On April 25, Justice Emeka Nwite of the Federal High Court Abuja granted the request of the EFCC to arrest and detain six promoters of CBEX over alleged investment fraud amounting to over $1 billion.
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The EFCC, in the motion argued by its counsel, Fadila Yusuf, sought the court’s approval to detain the promoters pending the conclusion of investigations into the alleged offences and their possible prosecution.
The EFCC’s ex parte application sought two reliefs – the first requested the issuance of warrants of arrest for the defendants, and another to remand the defendants in EFCC custody while investigations are ongoing.
The anti-graft agency outlined four grounds for its request, asserting its statutory duty to prevent and detect financial crimes through investigation.
