GistNexus – April 16, 2025.
The Federal Government has finally spoken following the enigmatic crash of CBEX, a well-known online investment platform that recently collapsed, leaving a significant number of Nigerians disappointed and over ₦1.3 trillion in losses. President Fiscal Policy and Tax Reforms Committee Chairman, Mr. Taiwo Oyedele, on Wednesday extended heartfelt condolences to the victims while appealing to Nigerians to be smarter when investing, especially those that make unrealistic promises of returns.
Addressing his keynote speech at the second edition of The Spokespersons Summit, which was organized by the Nigerian Institute of Public Relations (NIPR) in collaboration with the Federal Ministry of Information and National Orientation, Oyedele highlighted the dangers of Ponzi schemes. He called for public enlightenment and financial literacy to prevent future disasters. Most of them were lured by the possibility of enormous and quick returns, but they only got catastrophic losses, he said.
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“To lose your hard-earned money on an investment that crashes a few months later is very painful,” Oyedele said, likening the psychological pain to paying taxes — at least with taxes, he said, there’s hope for societal gains such as roads and wages.
The Red Flags: False Promises and Unrealistic Gains
Oyedele was not timid in underlining the red flags of Ponzi schemes. He counseled that Nigerians should learn to recognize red flags and not be lured by appealing deals which appear too good to be true. “So people shouldn’t be caught up with all these ‘you get 100 percent in one month’ sales pitches,” he warned. “If someone can make 100 percent returns in a month, they will not come to you. They will go to the bank, borrow money at 30 percent interest, make money, and keep the profit.”
He then described how Ponzi schemes are designed to appear real at first, paying initial investors with funds from new investors, until the scheme inevitably falls apart. Before the majority of investors get on the bandwagon, there is nothing left for the rest. Oyedele called on Nigerians to make it a culture to critically question the market and seek opinion from other reputable finance practitioners before making investment choices. “If you do not see it clearly, then ask people around before investing your money in it,” he advised.
He called on professional organizations like the NIPR, regulators, and most especially the media to ramp up the efforts in financial education so that the average Nigerian would be well empowered to make sound decisions.
EFCC Steps In: Assurance of Recovery and Ongoing Investigations
In the wake of the CBEX scandal, though, the Economic and Financial Crimes Commission (EFCC) has stepped in to put some salt into the wounds of the numerous millions of investors now left financially stranded. In a Wednesday interview on Channels TV’s Morning Brief, EFCC publicist Dele Oyewale confirmed that the anti-graft agency had received countless calls and petitions from concerned Nigerians over the platform’s sudden disappearance act.
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Oyewale reported that investigations have since begun and that the EFCC works day and night tracking assets of CBEX promoters. He assured victims the agency is committed to recovering stolen funds and prosecuting the people involved. “We want Nigerians to know that this is not the end of the road,” Oyewale stated. “EFCC is on top of it.”. Our agents are already sorting through the necessary records and systems to offer accountability and possible restitution.
While he would not give a specific timeline, Oyewale said the Commission’s record shows that it does not take such matters lightly. He asked victims to remain calm and patient as the process moves forward, urging them to officially report their grievances and provide any useful information.
The Scale of the Destruction: Over ₦1.3 Trillion Lost at Once
The collapse of the CBEX platform shook Nigeria’s investment and digital finance landscape, with estimated losses exceeding ₦1.3 trillion. The platform, promising mouth-watering returns via cryptocurrency and forex-linked investments, had attracted thousands of Nigerians in different states — professionals, civil servants, students, and retirees. Most considered it a golden chance to beat poverty or grow their savings — a choice now haunting them.
Social media users have turned to voicing their sorrow, pain, and outrage over the tragedy. Others posted regrets about investing their life savings, loans, and even borrowed cash into CBEX, with others admitting to bringing friends and family members who are now blaming them for causing the devastation. The hashtag CBEXScam has also been used as a battle cry by social media victim groups who are now demanding accountability and justice.
The emotional and psychological effect of the scam has been significant too, with mental experts warning that trauma is bound to trigger anxiety or depression, worse. Economists say this saga is a woeful reminder of the dangers attached to “get-rich-quick” schemes and the need for improving regulatory stipulations.
Government Promotes Public Awareness and Regulation Revamp
In addition to short-term response, Mr. Taiwo Oyedele emphasized the need for long-term efforts to reduce the reoccurrence of Ponzi schemes in Nigeria. He appealed to government agencies, civil society groups, professional associations, and media to invest in on-going financial literacy efforts. “We also want to encourage Nigerians to seize the moment to learn, including learning about the tax reform, because you might find that knowledge in one place helps in another,” he said.
He added that the ability to comprehend how money works — from interest rates to the measurement of risk — is the secret to making good investment decisions. To him, fraudsters are most effective where people are desperate and ill-informed. That is why, he argued, national programs to eradicate poverty should be supplemented with education and enforcement.
Oyedele further said that regulatory agencies like the EFCC and the Securities and Exchange Commission (SEC) must be more proactive in tracking suspicious platforms before they blow up. The collapse of CBEX, he added, must be a wake-up call to all parties involved — including the government — that there must be more vigilance.
No One Is Immune: Even the Smart Can Be Tricked
Even though Oyedele said he himself has never personally been a victim of a Ponzi scheme, he did admit that the temptation can be great — especially if it’s friends or people you know who are in it. “I’ve never been a victim. I just feel like you can’t come at me with an investment opportunity that doesn’t make sense and leave me to try to convince me. It’s essentially entirely impossible,” he said. He mentioned that he even goes so far as when investing in licensed investment institutions and banks to understand the business model, risk concerns, and guarantees involved.
But the Ponzi victims are not always naive. Even highly educated professionals, businesspeople, and entrepreneurs have been deceived in most instances, typically under pressure from their colleagues or pseudospiciencies. Most scammers employ social proof — referrals, staged screenshots of profits, and influencer marketing — to convince those who otherwise would have exercised skepticism.
Experts advise that skepticism is one of the strongest fraud defenses. If it sounds too good to be true, it probably is. Financial security, they continue, comes from discipline, diversification, and due diligence — not shortcuts or secret recipes.
Looking Forward: A Collective Responsibility to Fight Fraud
The CBEX saga is a painful but a poignant reminder that anyone anywhere can be targeted by economic deceit. It has unveiled the havoc caused by unregulated online investment sites and placed in stark relief loopholes in Nigeria’s regulatory and financial literacy platforms. While the victims begin to recover, the response of the Federal Government is a spark of hope and guide to recovery.
It is not just the responsibility of the government or the EFCC to avert such tragedies — it is everyone’s, according to Oyedele. Nigerians must make noise, demand questions, report questionable platforms, and educate people in their circle. Professional associations, community leaders, religious bodies, and social media influencers must all be involved in creating awareness.
The hurt of the CBEX collapse will linger with us for some time, especially with those whose losses were total. But with action that is prompt, commitment that is sincere, and a firm effort, Nigeria can leverage this crisis as a watershed in the war against financial fraud. This is a time that calls not just for accountability but for awakening — so that no Nigerian should have to endure such avoidable loss again.
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Reported by GistNexus Team and Edited by Mr. Chibueze Onwuka