The Senate has ordered an investigative hearing into the operations of Ponzi and other fraudulent investment schemes in the country.
This move follows the collapse of Crypto Bullion Exchange (CBEX), a digital scam outfit which allegedly defrauded Nigerians of over ₦1.3 trillion.
The resolution was reached after a motion Wednesday jointly sponsored by Senators Mukhail Abiru (Lagos East) and Osita Izunaso (Imo West), Street and unanimously adopted by other senators during plenary.
The lawmakers expressed disappointment over the “gross regulatory failure by oversight institutions that allowed CBEX and similar platforms to operate unchecked”.
Senator Abiru, while debating the motion, said, “despite CBEX operating on a massive scale, there was no intervention”, pointing out that it was “a glaring failure of oversight.”
The Senate named the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU) as agencies that shirked in their responsibility and duty to check the trend.
Sen. Abdul Ningi (PDP, Bauchi-Central), in his contribution, stressed the constitutional duty of government to protect its citizens’ welfare, warning that the financial sector was being “gamed at the expense of ordinary Nigerians.”
Sen. Sadiq Umar (Kwara-North) lamented that victims have lost everything—some to depression, others to suicide, saying, “We can’t keep letting this happen. Regulators must be held accountable.”
Sen. Adamu Aliero (Kebbi-Central) noted that it is a disturbing trend that unlicensed fintech companies disguise scams under the cloak of innovation.
“The CBN must explain what protections are in place. Clearly, what we have isn’t working,” he said.
The Senate President, Godswill Akpabio, said, “they didn’t even know where to store the money—just stashed it in bags, stuffed warehouses with cash, and rats ate through the bundles.
“We saw suicides then. We are seeing them again. This is a national emergency.”
Akpabio urged senators to support nationwide financial literacy campaigns, warning that “if this hasn’t affected you, it has affected someone you know. If you are not affected, you may already be infected. We must act.”
Consequently, the Senate mandated its Joint Committees on Capital Market; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT and Cybersecurity to conduct a comprehensive probe into the operations of Ponzi schemes in Nigeria.
The committees are expected to hold public hearings across the six geopolitical zones, gather ordeals from victims, and summon top regulatory agencies for questioning.
