The screens went dark first. Then the excuses came. For thousands of Nigerians who had poured their life savings into CBEX, a digital investment platform promising monthly returns of 100%, the nightmare began with a simple error message: “Withdrawal failed.” Within days, account balances disappeared entirely, social media erupted in fury, and the grim reality set in. Another Ponzi scheme had collapsed, leaving a trail of broken dreams and an estimated N1.3 trillion in losses.
The scenes were heartbreakingly familiar. In Ibadan, angry investors stormed a CBEX office, carting off chairs, air conditioners, and even solar panels in a futile attempt to reclaim something, anything from the wreckage. On social media, the stories poured in: a young man who invested his university fees, now too ashamed to face his parents; a woman who lost her bridal savings, unsure how to break the news to her fiancé; a trader who watched $16,000 of business capital evaporate overnight. “I was ready to withdraw last week,” lamented one investor, Ola, to BBC Pidgin. “But my friend told me to wait. Now it’s all gone.”
What makes this collapse sting even more is how preventable it was. Nigeria has been here before many times. In fact. In 2016, the MMM Ponzi scheme imploded, wiping out billions and leaving millions heartbroken. Since then, the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have issued near constant warnings about unregulated investment platforms. Yet, like clockwork, desperate Nigerians keep ignoring the red flags, lured by the siren song of quick riches.
The psychology behind this cycle is equal parts tragic and predictable. Nigeria’s economy is in struggling, inflation at close to 30%, unemployment, and wages stagnant. For many, the idea of doubling one’s money in a month isn’t just tempting; it feels like the only way out. CBEX, like MMM before it, preyed on this desperation, using slick marketing and fabricated testimonials to create an illusion of legitimacy.
Early “winners” flaunted fake profits on WhatsApp and Instagram, creating a viral FOMO (fear of missing out) effect. Skeptics were mocked as “haters” or “poor minds.” Even those who knew it was a scam often gambled anyway, convinced they could cash out before the inevitable crash.
Now, the reckoning has arrived. On Telegram, CBEX administrators blamed a “hack,” promising to resolve the issues “soon”, a classic stall tactic. Meanwhile, the silence from regulators has been deafening. The SEC, which recently pledged to crack down on fintech fraud, has yet to issue a formal statement. This lack of urgency fuels public cynicism. “The government warns us, but does nothing to stop these schemes,” complained one X user. “Then when they collapse, it’s the poor people who suffer.”
The human toll is staggering. Beyond the financial losses, many victims face psychological trauma, shame, depression, even suicidal thoughts. Marriages and friendships have been strained by bitter accusations. “I warned my church group,” posted David Eyo on Facebook. “They laughed at me. Now they’re begging for help.” Others, like the Instagram user who lost her bridal savings, are left numb: “I don’t even know how to tell my fiancé.”
What’s most galling is how little has changed since MMM. The same mistakes, the same greed, the same devastation. Financial literacy remains abysmal in Nigeria, and scammers exploit this ruthlessly. As one X user noted: “No investment rule says ‘risk money you can’t afford to lose.’ But people don’t want to hear that. They just want miracles.”
The bitter irony? Those who chased unrealistic returns would have been better off with boring, regulated options, government bonds, mutual funds, even savings accounts. The gains would have been modest, but at least the money would still exist. Instead, another generation of Nigerians has learned the hardest of lessons: if it sounds too good to be true, it is.
As the outrage simmers, one question lingers: will this finally be the wake-up call Nigeria needs? Probably not. With the economy in free fall and desperation growing, the next Ponzi scheme is already out there, repackaging the same old lies. The names change, MMM, CBEX, whatever comes next, but the outcome remains the same. Until Nigerians start valuing due diligence over delusion, and until regulators move beyond warnings to real enforcement, the cycle will continue. Money will vanish, lives will unravel, and the scammers will simply move on to their next target.
We have read somewhere that some have started accessing their investment. Foul! I can’t bet that this is another old play to calm frayed nerves while the lamentation lasts and fizzles into the thin air.
But for now, let the victims pick up the pieces. Some vent on social media, others seek solace in faith, a few plot futile revenge. But most just stare at their empty CBEX accounts, wondering how they fell for it again. As one user posted: “CBEX came, sweet-talked us, and vanished like a thief in the night. Let’s be honest, we were all greedy.” He is right? The saddest truth! He is right.
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