The Nigerian Senate has resolved to investigate Ponzi schemes and various online payment platforms notorious for defrauding investors. This comes in the wake of the Crypto Bullion Exchange (CBEX) collapse, which resulted in losses exceeding N1.3 trillion last April.
Four Senate committees have been tasked with conducting a thorough investigative hearing over the next month. This decision was made during a session chaired by Senate President Godswill Akpabio, following a motion by Senators Mukhail Adetokumbo Abiru and Osita Izunaso. They highlighted the extensive harm caused to Nigerians by failed Ponzi schemes.
The Senate expressed grave concern over the proliferation of unregulated investment schemes, recalling notorious cases such as MMM Nigeria and MBA Forex. The motion spotlighted the CBEX debacle, which lured investors with unrealistic returns before collapsing.
Senator Abiru condemned the rapid growth of fraudulent schemes despite regulatory measures by the Central Bank of Nigeria (CBN). He called for accountability from regulatory bodies, emphasising the urgent need for detailed investigations to combat this issue.
Senator Mohammed Monguno urged stronger legislative measures to protect vulnerable citizens from being exploited. Furthermore, Senator Sadiq Suleiman stressed the importance of continuous monitoring of financial schemes to safeguard the public.
Senator Solomon Olamilekan raised concerns about young Nigerians being the primary investors in these scams, questioning the effectiveness of current regulations. Senator Abdul Ningi described the situation as extraordinary and called for decisive action against the perpetrators of these schemes.