The Nigerian Senate has launched a sweeping investigation into the alarming surge of Ponzi schemes in the country, following the catastrophic collapse of Crypto Bridge Exchange (CBEX), a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion.

Described as one of the largest financial scams in Nigeria’s history, the CBEX debacle has triggered widespread outrage and prompted lawmakers to declare a national emergency, citing its devastating social and economic consequences.

The Senate motion, jointly sponsored by Senators Tokunbo Abiru (Lagos East) and Osita Izunaso (Imo West), was unanimously adopted. Lawmakers across party lines condemned what they called systemic regulatory failures that allowed such fraudulent platforms to thrive unchecked.

Presenting the motion, Senator Abiru revealed that CBEX exploited lapses in oversight by key financial regulators including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the Nigerian Financial Intelligence Unit (NFIU), and the Economic and Financial Crimes Commission (EFCC).

“Over ₦1.3 trillion was lost to CBEX alone. This is not an isolated incident—it follows a troubling trend dating back to MMM in 2016 and MBA Forex in 2020. Nigerians are being defrauded repeatedly,” Abiru stated.

He warned that the ripple effects are far-reaching, including depression, suicides, and increasing public distrust in the financial system.

Senator Tahir Monguno (Borno North) described the situation as “alarming,” calling for urgent legal reforms and strict prosecution of offenders. “Enough is enough,” he declared.

Senator Sadiq Umar (Kwara North) criticized regulatory bodies for their inaction, saying, “The institutions meant to protect Nigerians have failed them. They must wake up.”

Senator Solomon Adeola (Ogun West) broadened the scope of concern, noting that many unlicensed fintech firms operate under the guise of digital innovation. “The CBN must disclose what safeguards are in place and how many platforms are properly vetted,” he said.

Senator Abdul Ningi (Bauchi Central) called on the National Assembly to invoke its constitutional powers under Sections 88 and 14 of the 1999 Constitution to hold regulatory agencies accountable.

In a personal reflection, Senate President Godswill Akpabio disclosed that he had once fallen victim to a Ponzi scheme in Port Harcourt in the 1990s.

“History is repeating itself—only now with even more devastating consequences,” Akpabio said. “₦1.3 trillion lost. Families devastated. Lives lost. This is an emergency. We must act swiftly and decisively.”

He endorsed the call for nationwide public hearings and robust financial literacy campaigns, warning: “We cannot allow digital predators to keep robbing Nigerians blind. We must restore trust and reclaim our economy.”

The Senate resolved to establish a multi-committee investigation comprising the Committees on Capital Market; Banking, Insurance, and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT & Cybersecurity.

The lead committee is expected to hold public hearings and submit its findings within four weeks.

The Senate also clarified that the investigation would extend beyond CBEX, aiming to uncover broader lapses in Nigeria’s digital financial space and recommend sweeping legal and regulatory reforms.