Ponzi Scheme Warning: FG Reacts to CBEX Losses, Emphasizes Collective Action

The Federal Government has expressed its sympathy for those affected by the recent collapse of the digital investment platform CBEX, emphasizing the urgent need for Nigerians to collectively combat the growing threat of Ponzi schemes.

Speaking at the Nigerian Institute of Public Relations' Spokespersons Summit in Abuja, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, stressed that eradicating such fraudulent schemes requires a unified effort from all citizens.

Oyedele highlighted the distress of losing hard-earned money to ventures that quickly fail, contrasting it with the potential benefits of taxation. He urged Nigerians to enhance their financial literacy, including understanding tax reforms, as related knowledge can offer broader protection. He also called on regulators, professional bodies like NIPR, and the media to intensify public education efforts against these scams.

"Beware of unrealistic promises like 100% monthly returns," Oyedele cautioned, explaining that genuine high-yield opportunities would likely not be offered to the general public. He advised thorough scrutiny and seeking clarification before investing in unfamiliar schemes.

Oyedele confirmed that the Economic and Financial Crimes Commission (EFCC) and the Securities and Exchange Commission (SEC) are actively addressing the issue. Sharing his personal approach, he stated he always demands transparency and clear explanations of risks and guarantees before making any investment, even with reputable institutions. He reiterated that combating Ponzi schemes is a shared responsibility, advising, "If it sounds too good to be true, it probably is."

The CBEX platform reportedly crashed on Tuesday, causing investors losses estimated at over N1.3 trillion and triggering widespread public outcry.

In a related development, the EFCC spokesperson, Dele Oyewale, assured CBEX investors on Channels TV that the agency is receiving numerous inquiries and is working on potential remedies.