Pushed by the rising poverty, hunger and other challenges of human existence, and most often greed, many low-income earners and some moderately comfortable Nigerians keep falling victim to fraudulent Ponzi schemes in which Nigerians recently lost a whooping N1.3 trillion to CBEX, the latest scammer of Nigerians. But fortunately, a legal framework comes to the rescue according to the Securities and Exchange Commission (SEC)
By Edu Abade
As more Nigerians fall deeper into poverty and hunger, living on less than $1 a day due to insensitive government policies and harsh economic environment exacerbated by high rate of unemployment, many households now resort to betting games and patronizing Ponzi schemes, many of which end up as scams.
The situation is so dire that several clerics and even financial regulatory authorities have cautioned against patronizing Ponzi schemes, but determined to satisfy their survival instincts to eke out a living, such admonitions usually fall on deaf ears.
A review of failed Ponzi schemes in Nigeria for 10 years since 2016, showed that about 51 of such schemes have come and gone, with most of them carting away contributions and purported savings of their victims running into trillions of Naira.
In 2016, there were 10 of such Ponzi schemes including MMM Nigeria, Ultimate Cycler, Get Help Worldwide (GHW), Twinkas, ICharity Club, Crowd Rising, Claritta, Help2Get, Looper and Givers Forum.
There were 12 of such schemes in 2017, being the year with the highest number. They were NNN Nigeria, MMM Cooperation, Global Crediting Cooperative Hub (GCCH), Money Riot, RevoMoney, SwissGolden (Nigeria Version), Nigeria News Update (NNU), Peer2Peer Donation, Twinkas Reloaded, Donation Hub, MyBonus and ZarFund.
Again, in 2018, there were five Ponzi schemes namely, Bitclub Advantage, Million Money, Helping Hands International, DGSouk and Penny Wise, 2019 had two, Loom and Crowd1, 2020 witnessed four schemes including Lions Share, Inks Nation, Baraza Multipurpose Cooperative and Racksterli.
For the year 2021, there appeared another four Ponzi schemes with different names such as 86FB (aka 86Z), Eagle Cooperative, Royal Q (Nigeria Scam Version) and FINAFRICA.
The year 2022 saw another seven Ponzi’s which went by the names Ovaioza Farm Produce Storage, QNet Nigeria, Afriq Arbitrage System (AAS), MBA Forex, Chinmark Group, Inksledger and Axim Exchange.
More Ponzi schemes birthed in 2023 such as CALA (Cala Finance) and 6Dollars Investment.
Furthermore, 2024 came with another three Ponzi schemes including Compoundly, Sidra Investment (Cloned Scam Version) and Wealth Buddy, while BitFinance Global and the latest, CBEX joined the fray in 2025 for which the victims have been swindled a whooping N1.3 trillion.
Responding to the latest Ponzi scheme gone awry, a lecturer with the Federal University, Oye-Ekiti, Dr. Segun Raphael Larayetan, put it rather sarcastically: “You invested $50 to get $150 (200 percent increase) in two weeks. You were not duped, you only met your senior colleagues (in crime).”
Following the development, the Economic and Financial Crimes Commission (EFCC) recently assured the victims that their funds would be recovered but with a caveat that they should not expect a refund too soon.
In a statement issued by Head of Media and Publicity, Dele Oyewale, the suspects-Seyi Oloyede, Emmanuel Uko, Adefowora Oluwanisola and Adefowora Abiodun Olaonipekun-are accused of orchestrating a sophisticated scheme that lured thousands of investors with promises of extraordinary returns.
Operating under CBEX, the group allegedly encouraged people to deposit digital assets, particularly the stablecoin USDT into the platform. After amassing a significant amount of funds, the platform was abruptly shut down, leaving investors stranded and unable to recover their money.
The commission is calling on the public to come forward with any information that could lead to the arrest of the suspects. Tips can be reported to any EFCC office nationwide, including branches in Lagos, Ibadan, Abuja, Kano, Enugu, Gombe and Port Harcourt.
Also, the Securities and Exchange Commission (SEC) had cautioned celebrities, social media influencers, and bloggers against the promotion of unregistered and fraudulent investment schemes.
The Commission has also reminded members of the public that the recently signed Investments and Securities Act (ISA) 2025 prescribes stiff penalties for violations, including jail terms and huge fines.
The SEC also disclosed that it was collaborating with the EFCC, the Nigerian Police Force (NPF) and other relevant government institutions to investigate and prosecute individuals and platforms involved in unlawful investment promotions.
Director General of the SEC, Dr. Emomotimi Agama, noted that the ISA 2025 contains specific provisions targeting promoters of fraudulent and unregistered investment schemes.
He said those who exploit their platforms to promote such ventures now face serious legal risks, adding: “The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment,” he said, urging them to desist immediately.
He stressed that SEC remains focused on its responsibilities of investor protection and capital market development, he also urged Nigerians to exercise caution when approached with investment offers, particularly those promising unrealistic high returns.
“People must be careful, ask questions and consult professionals before investing their hard-earned money,” Agama stated.
As part of measures to safeguard the market, SEC said it has enhanced its internal surveillance capacity just as the DG disclosed that dedicated departments have been created to monitor market activities and carry out onsite inspections, enabling the Commission to swiftly identify and respond to suspicious operations.
Agama, who assured of proactive strategy designed to prevent widespread investment frauds, said, “Once we hear anything, we do something,” noting that the initiatives have become even more critical in the wake of the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion.
CBEX reportedly lured investors with promises to double their funds within a month and falsely claimed international affiliations. The SEC, Agama assured, is determined to shut down such operations and bring their promoters to justice.
He further explained that the ISA 2025, described as ‘a landmark legislation,’ signed into law by President Bola Ahmed Tinubu, has empowered the Commission with new legal tools to tackle fraudulent schemes. For the first time, Ponzi schemes are clearly defined under Nigerian law, with promoters now liable to face a minimum fine of ₦20 million and imprisonment of at least 10 years.
Agama revealed that beyond the fight against Ponzi schemes, the law also brings digital assets under the regulatory oversight of the SEC, adding that the development mandates all Virtual Asset Service Providers and Digital Asset Exchanges to register with the Commission and operate within established guidelines.
This, he said, closes a long-standing legal gap that previously enabled scammers to exploit investors in the digital space without consequences.
“The SEC is capable, has the capacity, has the knowhow and of course will be able to deal with anyone caught in this mess,” Agama declared, while restating the Commission’s readiness to act decisively against all fraudulent operators.
“Investor education remains central to the SEC’s broader reform agenda. To this end, the Commission has launched educational campaigns across multiple platforms, including podcasts and social media, while also integrating capital market education into school curricula nationwide.
“We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes.
“The SEC urges Nigerians to take personal responsibility by verifying all investment opportunities directly with the Commission before committing their funds. Once it is too good to be true, it certainly is not true,” he stated.
He also stressed that the Commission is working to democratize wealth creation by providing a transparent and secure capital market environment for all Nigerians. The capital market helps you to democratize wealth for everybody,” he said, adding that ISA 2025 marks a crucial milestone in protecting investors and ensuring the resilience of Nigeria’s financial market”.
As fraudulent investment promoters increasingly target members of the public through social media and digital channels, the SEC says its message is clear: “The era of unchecked exploitation of Nigerian investors with fraudulent Ponzi schemes is gone for good.”
