In a move that underscores growing concerns over financial fraud in Nigeria, the Federal Government has expressed deep sympathy for victims of the now-collapsed CBEX Ponzi scheme. The CBEX platform, which lured thousands of unsuspecting Nigerians with promises of high returns on investment, recently crashed—leaving investors devastated and their funds inaccessible.
During a press briefing, government officials condemned the fraudulent scheme, describing it as a tragic repeat of the numerous financial scams that have targeted Nigerians over the past decade. The spokesperson for the Ministry of Finance, Budget and National Planning, Mrs. Aisha Ahmad, stated that the CBEX collapse has once again revealed the urgent need for more robust financial literacy and regulatory measures to protect the public from exploitative ventures masquerading as legitimate investment opportunities.
“The Federal Government sympathizes deeply with every Nigerian affected by this unfortunate development. The CBEX case highlights how critical it is for citizens to verify the authenticity of any financial or investment platform before committing their hard-earned money,” Ahmad said.
What Was CBEX?
CBEX (CryptoBond Exchange) was marketed as an investment platform promising daily or weekly returns based on cryptocurrency and foreign exchange trading. With an aggressive online marketing strategy and influencer endorsements, the platform gained rapid popularity between late 2023 and early 2024. However, like many Ponzi schemes, the company operated unsustainably by paying old investors with the funds of new recruits.
The house of cards came crashing down in early 2025 when the CBEX website became inaccessible, and payouts to investors stopped entirely. Thousands of victims, including civil servants, small business owners, and students, reported losses ranging from ₦50,000 to several million naira.
Regulatory Inaction and Public Trust
The Securities and Exchange Commission (SEC) had earlier warned Nigerians to steer clear of unlicensed financial institutions and digital asset trading platforms. In 2024, the commission released a list of flagged platforms, although CBEX was not named specifically. Critics now argue that more proactive monitoring could have potentially prevented the widespread damage caused by the scheme.
The Economic and Financial Crimes Commission (EFCC) has since launched an investigation into the CBEX operators, while also encouraging victims to formally lodge complaints via the agency’s online reporting portal. The EFCC noted that fighting Ponzi schemes requires timely reports and collective action from the public.
The Broader Implication
Nigeria remains a hotspot for fraudulent financial activities due to economic hardship, high unemployment rates, and limited financial education. According to a 2022 report by the Nigeria Deposit Insurance Corporation (NDIC), Nigerians lost over ₦300 billion to Ponzi schemes between 2016 and 2022.
These fraudulent platforms prey on desperation, often promising unrealistic profits without any viable business model. In the aftermath of CBEX’s collapse, financial analysts and economic policy advocates are calling for a renewed national strategy focused on public education, better enforcement of regulations, and collaboration with tech platforms that unwittingly enable these schemes through ads.
The Way Forward
To protect the Nigerian populace from future scams like CBEX, experts recommend:
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Public Awareness Campaigns: Government and private institutions must launch continuous campaigns to educate citizens about the dangers of Ponzi schemes.
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Stricter Regulations: Enhanced oversight of online platforms and investment advertisements, especially on social media.
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Whistleblower Incentives: Creating reward systems for individuals who expose fraudulent investment operations.
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Financial Literacy in Schools: Integrating basic investment and financial decision-making education into Nigeria’s school curriculum.
“We must take a stand as a nation to fight back against these predators. Nigerians deserve safe and secure investment environments,” said the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani.
Final Thoughts
The collapse of CBEX is yet another painful reminder of the urgent need for vigilance in financial dealings. As the Federal Government reiterates its commitment to safeguarding citizens from fraudulent schemes, every Nigerian must also play their part by staying informed, reporting suspicious platforms, and helping build a culture of accountability and transparency.
References:
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[NDIC Annual Fraud Report 2022]
Last Updated on April 16, 2025 by kingstar
