The Social Democratic Party (SDP) has called for drastic measures to combat financial scams in Nigeria.
In a statement issued on Monday and signed by National Publicity Secretary, Araba Rufus Aiyenigba, SDP blamed the recurrence on failure of regulatory institutions in Nigeria.
The party called for stiffer legislations and regulations to combat the scourge.
The statement expressed worries that once again, and very sadly, the crashing of the CBEX, a digital asset platform, which has plunged a huge mass of Nigerians into financial crisis and compounded their economic woes, has further exposed the failure of regulatory institutions and systems in effectively and efficiently delivering on their statutory mandates.
Recalling crimes associated with ponzi schemes in Nigeria over the past ten years, Aiyenigba said “It is reported that CBEX is a ponzi scheme that deplores artificial intelligence (AI) for trading in crypto and under an agreement of 40-50 days lock-in of assets on an unimaginable offer of a hundred per cent
return on investment in 30 days.
“CBEX is said to be a high-yielding ponzi investment platform where investments are strictly made in American dollars, right here in Nigeria!
“At the time it completely suspended withdrawals, locked its telegram and dropped the investment and account balances of its unsuspecting users to zero, it had swept away and wired offshore, a collosal sum of 800 million dollars (N1.3 trillion).
“The operations of the platform, which came to prominence and got embraced by seekers of easy wealth and quick fixes, not long ago, is not in anyway different from others that have traumatised a large number of Nigerians in the last two decades of thereabouts.
“Less than ten years ago, in 2016, we had the bad experience of the Marvodi Mundial Movement, popularly known as MMM, to which Nigerians lost over 18 billion naira.
“According to a report by the Security Exchange Commission (SEC) that Nigerians lost over N300 billion in five years to the criminal activities of ponzi schemes, which are nothing but money laundering platforms.
“Interestingly, the EFCC has stated that it has commenced investigations into the latest CBEX scam and would be collaborating with the International Criminal Police Organization (InterPol) to get the perpetrators to book. That sounds like a too familiar rhetoric.
“The question we should be asking the EFCC, the ICPC, FCPC, and the SEC is why waiting for Nigerians to be swindled before acting? The activities of CBEX were not hidden; they were operating openly, with physical offices, and also seen on promoting their services on social media.”
The SDP condemned the prevailing wrong orientation of Nigerians, particularly among the youth, to desire quick wealth, immediate gratification, sudden prosperity, and the tendency to explore any source to attain wealth and riches.
The party also called for stricter legislations against financial crimes associated with ponzi schemes, while the regulatory agencies should up their games in enforcing regulations.
“The recently signed Investments and Security Acts (2025) is considered apt. The Act stipulates a two year jail term and severe penalties of hefty fines, while the SEC, by the Act, has regulatory and prosecution powers over ponzi schemes. How much biting the regulators would do is left to be seen.
“Nigerians should no longer be made to bear the brunt of the failure of our public institutions to do their job.
“The National Orientation Agency (NOA) needs to be more alive to its responsibility of sensitising the public on the need for our people, particularly the youth, to imbibe the right and noble values. The agency has a duty to ring the warning bells more loudly to draw the attention of the people to criminal acts that are inimical to their well-being and our national interests in general,” he said.
The party called on the Federal government to do more in practical terms, to improve the economic conditions of the people, and make life truly meaningful for Nigerians, so as to reduce the tendency of citizens becoming easy preys and vulnerable to the criminal activities of financial fraudsters and scammers.
