By Ebi Kesiena
Nigerian investors are still struggling with the reality from the collapse of a digital investment platform, CBEX, which is alleged to have defrauded thousands of individuals of more than N2 trillion. The platform, which operated under the guise of a legitimate business across Lagos, Abuja, and Oyo states, suddenly folded last week, wiping out over $850 million in investor savings and sparking outrage across several sectors, especially the downstream oil and gas industry.
According to industry insiders, CBEX attracted heavy investments from oil and gas operators who were enticed by promises of 100% returns within 30 days.
A source within the sector, speaking to the media, said, “The official figures being quoted are conservative. From the downstream petroleum sector alone, the platform raked in over N1 trillion.”
The magnitude of the loss has plunged entire communities into turmoil. WhatsApp groups created for investment coordination have descended into chaos, with some administrators reportedly fleeing and others distancing themselves from blame.
Victims of the scheme have voiced frustration at regulatory bodies, particularly the Securities and Exchange Commission (SEC), for what they describe as a failure to act in time to prevent the scam.
Many have questioned how CBEX was able to operate so openly, with offices nationwide and promotional campaigns across both social and mainstream media. The platform gave the impression of being a licensed digital investment entity, luring in unsuspecting Nigerians with its slick branding and high-yield promises.
In response to growing public concern, the SEC issued a circular just before the Easter break, clarifying that CBEX was never registered with the Commission to operate as a digital asset exchange or solicit investments from the public.
The regulator warned that CBEX operated under multiple aliases and engaged in unauthorised investment solicitation, including offers of “unrealistic” returns.
“The Commission hereby clarifies that neither CBEX nor its affiliates were granted registration by the Commission at any time to operate as a digital assets exchange, solicit investments from the public, or perform any other function within the Nigerian capital market,” the SEC stated. It added that the platform’s failure to honour withdrawal requests and the sudden closure of its physical offices were classic hallmarks of a Ponzi scheme.
Meanwhile, CBEX’s promoters had promised rapid and massive returns—100% within 30 days—a promise that financial experts warn should have raised immediate red flags. The SEC now says those behind the fraudulent scheme will be held accountable. “The law empowers us to protect investors and restore confidence in the capital market,” the Commission stated.
The Economic and Financial Crimes Commission (EFCC) has also stepped into the matter, confirming that investigations are underway to recover lost funds and bring the perpetrators to justice. An EFCC spokesperson said that the agency is already tracking assets linked to CBEX operators and will collaborate with international partners to trace offshore accounts and possible laundering activities.
The scandal has once again drawn attention to the proliferation of Ponzi schemes in Nigeria’s financial landscape, raising questions about investor education, regulatory enforcement, and the vulnerabilities of digital platforms in the country. Despite repeated warnings from the SEC and other authorities, high-return schemes continue to flourish, often preying on economically distressed Nigerians hoping to multiply their income.
Financial analysts are now urging stronger oversight and better public awareness. “The Nigerian market is fertile ground for these schemes because of economic hardship and poor financial literacy,” said Adewale Ogunlana, a Lagos-based investment analyst. “We need urgent action—not only in enforcement but also in education.”
As regulators move to crack down on CBEX and its promoters, thousands of investors are left wondering if they will ever recover their life savings. For many, it is a painful lesson in the dangers of too-good-to-be-true investment promises and a sobering call for tighter regulation in Nigeria’s rapidly evolving digital financial ecosystem.
