In a decisive move, the Nigerian Senate has mandated an investigation into Ponzi schemes and online payment platforms that defraud investors. This follows the significant financial losses resulting from the recent collapse of Crypto Bullion Exchange (CBEX), which saw investors lose over N1.3 trillion.
During a session led by Senate President Godswill Akpabio, four Senate committees were assigned to undertake a comprehensive investigation in the coming weeks, prompted by concerns raised by Senators Mukhail Adetokumbo Abiru and Osita Izunaso regarding the devastating impact of Ponzi schemes on the economy.
The Senate has voiced serious concerns over the alarming rate of unregulated investment schemes, recalling past examples like MMM Nigeria and MBA Forex. The motion specifically referenced the CBEX scandal, which promised astonishing returns but ultimately left many in financial ruin.
Senator Abiru highlighted the failures of regulatory bodies in preventing such schemes from thriving, calling for urgent interventions from the National Assembly to address these fraudulent operations.
Senator Mohammed Monguno emphasised the need for tougher legislation to protect the public, while Senator Sadiq Suleiman urged increased vigilance from regulatory agencies. Senator Solomon Olamilekan and Senator Abdul Ningi both expressed disbelief at the scale of these scams and the apparent ineffectiveness of existing regulations.
