…Demands Accountability from Regulatory Agencies
By Mercy Gadia Adi
The Nigerian Senate has taken a significant step towards addressing the growing concern of Ponzi schemes and unregulated investment platforms in the country. On Wednesday, the Senate launched an investigative process into the operations of these schemes, following the collapse of Crypto Bullion Exchange Civics (CBEX), a fraudulent digital scheme that reportedly defrauded over ₦1.3 trillion from unsuspecting Nigerian citizens.
The motion, moved by Senator Mukhail Adetokunbo Abiru (Lagos East) and co-sponsored by Senator Osita Bonaventure Izunaso (Imo West), was unanimously supported by lawmakers across party lines. Senator Abiru described the Civics scandal as “one of the most devastating financial scams in the country’s history,” and expressed shock on that the regulatory agencies failed to protect the Nigerian public from this massive financial crime.
The Senate President, Godswill Akpabio, praised the sponsors of the motion and emphasized the urgency of restoring public trust and economic stability.
“This motion speaks to the soul of the nation. If it doesn’t affect you directly, it affects your family, your friends, your constituents, Many of these frauds date back decades. The same cycle keeps repeating, people invest, platforms collapse, and there is no accountability. This must end now,” Akpabio said.
During the debate, on the floor of the red chambers several senators expressed outrage over the recurring nature of Ponzi scheme collapses in Nigeria.
Senator Abdul Ningi (Bauchi Central) described the situation as a national tragedy and a failure of government oversight. “Rural dwellers, market women, artisans, students, people who struggle daily to survive, are the ones most affected. And all of this has been happening under the noses of our regulators,” Ningi said.
Senator Sani Musa (Niger East) stated that, “Some Nigerians have not only lost money but have lost their minds and lives. This is not just economic exploitation, it’s psychological warfare against the people.”
Senator Solomon Adeola (Ogun West) warned that Ponzi-style platforms are only one part of a broader wave of unregulated fintech and payment gateway frauds taking root in Nigeria. “We cannot allow this digital financial recklessness to continue. In no other serious country are these kinds of ‘investment miracles’ allowed to fester unchecked,” Adeola questioned.
The Senate agreed that the committees must not only investigate the frauds but also engage in zonal public hearings and education campaigns to enlighten Nigerians about the risks of online financial schemes and the importance of regulatory compliance. Lawmakers warned that unless Nigerians are educated and regulators are held accountable, more lives and livelihoods will continue to be destroyed.
As a result the Senate resolved to mandate its Joint Committees on Capital Markets; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT and Cybersecurity to conduct a comprehensive investigative hearing on the operations of Ponzi schemes in Nigeria.
The committees are expected to examine the regulatory gaps and lapses that allowed schemes like Civics to thrive unchecked, recommend robust legislative and institutional reforms to prevent future occurrences, and launch a nationwide public sensitization campaign to educate Nigerians on digital investment scams and financial literacy.