Senate probes N1.3tn CBEX collapse, declares national emergency

Senate

The Senate on Wednesday launched a sweeping probe into the rise of Ponzi schemes in the country, following the catastrophic collapse of Crypto Bridge Exchange, a digital investment platform that allegedly fleeced Nigerians of over N1.3tn.

The Ponzi scheme has been described as one of the largest financial scams in the nation’s history.

The senators blamed the rise of ponzi-style investment schemes on regulatory failures and weak financial oversight, warning that the ripple effects—including rising suicide rates and growing public mistrust—now threaten Nigeria’s social and economic stability.

The motion, jointly sponsored by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), received unanimous support on the Senate floor, with lawmakers across party lines condemning the systemic failures that allowed such platforms to flourish unchecked.

Presenting the motion, Abiru detailed how CBEX exploited weak regulatory oversight by the Central Bank of Nigeria, the Securities and Exchange Commission, the Nigerian Financial Intelligence Unit, and the Economic and Financial Crimes Commission to lure millions of Nigerians into a financial trap.

Abiru said, “Over N1.3tn was lost to CBEX alone. This is not an isolated case. It is part of a disturbing pattern dating back to MMM in 2016 and MBA Forex in 2020. Nigerians are being robbed repeatedly,”

He further warned that the fallout includes depression, suicides, and a growing mistrust in legitimate financial institutions.

Senator Tahir Monguno (Borno North) called the situation “alarming,” adding, “We must strengthen our laws and ensure offenders face the full weight of justice. Enough is enough.”

Backing the motion, Senator Sadiq Umar (Kwara North) said the Nigerian public had been failed by institutions meant to protect them.