The Nigerian Senate has launched an urgent investigation into the collapse of Crypto Bridge Exchange (CBEX), a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion. The move comes amid growing alarm over the unchecked rise of Ponzi-style schemes threatening the country’s financial stability and public trust.
In a motion sponsored by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), lawmakers decried what they called a national tragedy. The motion, which received unanimous support across party lines, described the CBEX saga as one of the worst financial scams in Nigeria’s history, echoing the infamous MMM crash in 2016 and the MBA Forex collapse in 2020.
Senator Abiru accused CBEX of exploiting regulatory weaknesses within key government bodies, including the Central Bank of Nigeria, the Securities and Exchange Commission, the Nigerian Financial Intelligence Unit, and the Economic and Financial Crimes Commission. He warned that the consequences are already showing rising depression, suicide cases, and growing public disillusionment with formal financial systems.
“This isn’t just about CBEX. Nigerians are being repeatedly targeted and scammed, and it’s largely because our regulatory institutions are not stepping up,” Abiru stated.
Lawmakers didn’t mince words as they called out financial regulators for failing in their duty to protect citizens. Senator Tahir Monguno (Borno North) called the situation “unacceptable,” emphasizing that offenders must be brought to justice. Senator Sadiq Umar (Kwara North) added that regulatory agencies were trusted by the public to act, not to stay silent.
Senator Solomon Adeola (Ogun West) raised further concerns over the growing number of unlicensed fintech firms, accusing some of hiding behind the veil of innovation to operate unchecked. He urged the Central Bank to clarify what measures exist to verify and monitor such platforms.
Echoing these concerns, Senator Abdul Ningi (Bauchi Central) pushed for the National Assembly to invoke its constitutional powers to demand answers and ensure stricter oversight moving forward.
In a rare personal reflection, Senate President Godswill Akpabio revealed that he too had once fallen victim to a Ponzi scheme in the 1990s, underscoring how long-standing the issue is. “History is repeating itself, but now on a more devastating scale,” he said. “₦1.3 trillion vanished just like that. This is nothing short of a national emergency.”
He threw his support behind plans for public hearings and massive financial literacy campaigns to educate Nigerians and prevent further losses. “We cannot watch our citizens fall into these traps again and again. It’s time to act,” he declared.
As part of its response, the Senate has set up a multi-committee task force to investigate CBEX and broader issues within Nigeria’s digital finance ecosystem. The probe will be led by a joint effort of the Committees on Capital Market; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT & Cybersecurity.
The Senate expects the lead committee to conduct public investigative hearings and submit its findings within four weeks. Lawmakers made it clear that this investigation will look beyond CBEX to uncover deeper structural problems in Nigeria’s fintech and crypto space, with the aim of pushing major regulatory and legal reforms.
