Senate Probes ₦1.3 Trillion Lost to Ponzi Schemes, Moves to Regulate Online Investments

By Diafa Doubra,

The Nigerian Senate has launched an investigation into the growing menace of Ponzi schemes across the country, following reports that Nigerians have collectively lost about ₦1.3 trillion to fraudulent online investment platforms in recent years.

The motion, sponsored by Senator Osita Izunaso, highlighted the devastating impact of financial scams on millions of citizens who were lured by promises of unrealistic returns. He noted that many victims, including civil servants, students, and retirees, were left in financial distress after the collapse of these platforms—most recently the CBEX investment scheme.

Lawmakers expressed concern that the Central Bank of Nigeria (CBN) and other regulatory agencies failed to act swiftly to shut down these illegal operations before they expanded nationwide. The Senate’s Committee on Banking, Insurance, and Other Financial Institutions has been directed to investigate the CBEX crash and other similar frauds.

Senate President Godswill Akpabio, in his remarks, vowed that those behind the schemes would be brought to justice. He emphasized that the probe aims to restore public confidence in Nigeria’s financial system and ensure stronger oversight of digital investment platforms.