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How Nigerians lost N4.8 trillion on Ponzi since 2016 – Alaje
As panic erupts across Nigeria following the sudden crash of CBEX, a digital investment platform that promised to double investors’ funds within a month, Chief Economist at SPM Professionals, Paul Alaje has emphasised the need for investment education, highlighting that Nigerians have lost an estimated ₦4.8 trillion to pyramid scams since the collapse of MMM in 2016.
Alaje, in an interview with ARISE News on Thursday, described CBEX as the latest in a disturbing trend of fraudulent schemes exploiting economic hardship and financial desperation.
“Since MMM in 2016, Nigerians have lost approximately 4.8trn to pyramid scam. Pyramid scam is a scheme designed to rip you off of funds. It is only a pyramid scam that promises more interest than the IMF and World Bank put together in a month and sometimes in a week.”
The CBEX platform, which reportedly offered users 100% returns on investments, began experiencing technical issues over the weekend. By Monday, users were locked out of their accounts entirely and in the absence of any official communication from the company, panic quickly escalated into chaos.
In Ibadan, enraged investors stormed a CBEX office, carting away items such as chairs, air-conditioners, and even a solar panel. Online, heart-wrenching videos of victims, some in tears, flooded social media, with many pleading for answers and the return of their hard-earned money.
Alaje stressed the importance of due diligence before participating in any investment opportunity.
“Before you invest in any scheme, apart from the Corporate Affairs Commission certificate they would show you, ask them for a Securities and Exchange Commission license. If they don’t have that, they must have a Central Bank license. And make sure you verify,” he advised.
He warned that unrealistic promises of high returns are a red flag. He said “In this economy, when the promises are too good and excellent to be real, please have a second thought.”
Alaje also pointed out that the CBEX saga creates broader risks for legitimate investment firms. “This can cause industry risk for genuine people who are doing the right thing,” he said. “From history, I doubt everyone will get their money back, but I trust that the EFCC will do its best.”
The Securities and Exchange Commission (SEC) had earlier confirmed that CBEX is not registered with the agency. Emomotimi Agama, the SEC’s Director-General, said on Arise Xchange that any unregistered investment scheme is considered illegal under Nigerian law.
“For us at the SEC, our primary responsibility is investor protection, and investor protection stems out of registration and regulation,” he said.
“When a scheme is not registered with the SEC, it becomes illegal; and it is important that whoever is interested in investing in such a scheme must ask the question, Are you registered with the SEC?
“If that is not the case, then it is automatically stated and known that such is an illegal activity and will not be condoned even by the SEC.”
Agama added that the commission had no prior knowledge of CBEX’s operations because no formal complaints were filed before its collapse—a pattern consistent with other fraudulent platforms. “Most people try to keep it away from the regulator, only involving a close circle of friends,” he said.
The economist however stated his belief that despite the chaos, those behind CBEX can still be traced. “I don’t think the identity of those that own CBEX can disappear anywhere. Financial transactions were involved. Which accounts were paid to.
“We have smart security agencies in charge of investigations. I know that they can do it if they want to do it. That business must have been registered with corporate affairs commission. We can do CAC search and get the names and all,” he said.
He urged victims to assist in ongoing investigations by reporting details of their transactions.
“People need to come out to report officially and also help agencies of government in this regard to mention who they paid and how the payment was made.”
Looking ahead, Alaje called on government agencies to take proactive steps in financial education.
“You need to increase public awareness on investment risks,” he said. “You can engage and put adverts on credible organisations so that young people and old are listening across the board. Most importantly, you need to translate it into other major languages like pidgin English for people to know.”
For the umpteenth time, President Bola Tinubu has once again, urged Nigerians to be patient with his government, saying the reforms he embarked upon in the last three years, which had begun to yield result would come to its full manifestation soon.
The President, also expressed gratitude to those who had remained supportive of his government during the period, praising them for their resilience and promising that he would not disappoint in the end.
Tinubu, who spoke on Sunday while accepting the fresh nomination of the All Progressives Congress (APC) after being announced as the winner of last Saturday’s presidential primaries across the country, was particularly grateful to the members for their support and renewed his commitment to national development.
With a total of 10,999,162 votes against Stanley Osifo, his only opponent during the exercise who polled 16,503 votes, the President told his audience: “In accepting this nomination, I renew my commitment to serve our nation with even greater determination.
“With another four years of discipline, focus and national cooperation, we will firmly place Nigeria on an irreversible path of economic expansion, industrialisation, energy security, infrastructural development, food sovereignty and democratic consolidation.”
Anyim Pius Anyim, former Senate President, Chairman of the Presidential Primaries Committee of the party, had announced the result of the exercise, subsequent upon which the President received the party flag for the 2027 presidential polls from Nentawe Yilwatda, the APC National Chairman.
Tinubu, while acknowledging the economic hardship experienced by Nigerians since the introduction of key reforms under his administration, including the removal of fuel subsidy and foreign exchange reforms introduced in 2023, told the party faithful: “You have given me the encouragement. Sometimes it is difficult, and I share the pain with you.
“I know what it is to reform an economy that was in tatters. If you lost sleep, I lost some too. If you have lost weight, I think I have lost some too. But I have always remembered one thing: in 2022, I asked for this job, you all supported me, and I got it, so I must do it.”
Highlighting several reforms implemented by his administration, including the student loan scheme, tax reforms, and infrastructure projects, he said more than ₦282 billion had been disbursed to about 1.5 million beneficiaries under the student loan programme, pledging to strengthen electricity supply and create more opportunities for young Nigerians and businesses across the country ahead of the 2027 election.
The president reaffirmed his administration’s commitment to security, promising intensified efforts against banditry and other criminal activities across the country.
Tinubu also urged Nigerians not to become “complacent” or allow politicians without “clear alternative visions” to derail the country’s progress, noting that the forthcoming election must be “a reaffirmation of Nigeria’s democratic maturity.”
“We feel that if the situation is not immediately checked, the citizens may rise against the owners of gas filling stations,” were the words with which gas marketers raised alarm on Sunday about the consequences of the continued scarcity of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas across the country.
At the current prices, of ₦1,500 per kg, the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) warned stakeholders of an impending public anger against their operations, regardless of their innocence in the rising prices of the commodity.
They particularly drew the attention of the Federal Government, government agencies, industry regulators, importers, LPG producers, depot owners, LPG consumers, and the general public to the situation, exculpating members of blame, as they were now forced to pay between N25,200,000 and N26,200,000 for 20MT of cooking gas in parts of the country.
Part of the statement, read: “It is sad and rather very pathetic to inform the general public that the citizens of Nigeria have woken up to buy cooking gas, which should be a social item at a prohibitive cost of over N1,500per kg, while the Marketers are made to pay as much as N25,200,000, or, depending on location, N26,200,000 for 20MT of cooking gas.
“This sad situation has brought untold hardship to millions of Nigerian households, small businesses, food vendors, and low-income families who rely on LPG for daily cooking and livelihood.
“It is rather worrisome to state that this situation is seriously eroding the substantial progress made by the Government on the usage of Clean Energy in the country.
“We observe that where product is available, it is sold at rates far beyond the reach of average Nigerians. NALPGAM hereby observes that the current crisis is undermining years of progress achieved through Federal Government policies, public-private investments, and awareness campaigns aimed at deepening LPG penetration and promoting clean cooking energy as a safer alternative to kerosene, charcoal, and firewood in Nigeria.
“While millions of Nigerians have embraced cooking gas as a result of the national clean energy transition agenda, it is sad to state that those gains are at risk as households are struggling to refill cylinders, small businesses are folding under rising energy costs, while many families are reverting to firewood and charcoal despite the serious implications for public health, environmental degradation, and deforestation.”
On the wider socio-economic implications, the Association warned that if urgent and coordinated actions are not taken immediately, the current crisis could trigger broader consequences, including accelerated food inflation, the collapse of small-scale LPG retail businesses, job losses, reduced investor confidence, and a significant setback to Nigeria’s clean energy and climate commitments.
The Association is calling on the Federal Government, the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company (NNPC) Ltd, domestic producers, terminal operators, international suppliers, and all critical stakeholders in the LPG value chain to take urgent, coordinated steps to stabilise the market before it degenerates further.
It called for immediate measures to improve the availability and accessibility of LPG nationwide, increased domestic LPG allocation to the Nigerian market, ensuring transparent and equitable distribution of available supply across regions, reduction of bottlenecks in product importation, storage, and distribution, implementation of strategic interventions to stabilise retail prices, and protection of consumers.
The marketers also called for other measures, such as investment in critical infrastructure, including storage and distribution facilities, and adoption of policies that support affordability, sustainability, and long-term growth of the sector.
NALPGAM reaffirmed its commitment to constructive engagement and collaboration with government agencies, regulators, producers, and other stakeholders to develop sustainable solutions that will guarantee an affordable, stable supply and continued growth of the LPG sector.
“In conclusion, it is apposite to state that “We cannot stand by and watch millions of Nigerian families suffer in silence while access to clean cooking energy becomes increasingly difficult and unaffordable. For years, Government and industry operators have worked to move Nigerians away from unsafe fuels. Those gains are now under serious threat”, the statement added.
Nigerians have been warned to be on the lookout during the festive period this week, as Muslims across the world mark the Eid-Kabir, authorities of the Nigerian Army, warned on Monday, as intelligence has filtered in that terrorists would use the opportunity to launch attacks against civilian targets.
Sani Uba, a Colonel and spokesman of the Joint Task Force of the military in a statement, warned the general public to be on security alert, citing indications of the possibility of isolated attempts by Boko Haram and Islamic State West Africa Province (ISWAP) terrorists to exploit the
Sani, Media Information Officer, Headquarters Joint Task Force (North East) Operation HADIN KAI, who noted that the strikes would employ the use of suicide bombers and IEDs, particularly in areas of high population concentration, however, assured that the military had deployed troops and surveillance, and fully activated ISR assets to critical and vulnerable locations ahead of the Wednesday celebrations.
He said in the statement: “Patrols have been intensified, and security forces are operating in close coordination with sister agencies, the CJTF, and community vigilance groups to forestall any threat and guarantee a secure festive period for all residents.
The statement, further advise the public to conduct Eid prayers and festivities as close to their homes and familiar localities as possible, and avoid large open gatherings where practicable, adding: “Exercise heightened vigilance in crowded public spaces such as markets, motor parks, banking halls, and prayer grounds.
“Report any suspicious persons, unattended objects, or unusual movements to the nearest military checkpoint, police station, or civil-military liaison point immediately.
“Cooperate fully with security personnel during patrols and screening operations. Avoid unnecessary movement, particularly at night or in areas with limited security presence. Refrain from spreading unverified information or rumours capable of causing public panic. Rely only on official information from verified government and security channels.”
Stressing the roles of traditional rulers, religious leaders, media organisations, and community stakeholders to actively engage their communities and encourage the timely reporting of credible security information ahead of and during the celebration period, the statement said: “Your cooperation with security forces remains invaluable to the success of ongoing operations
“The Command remains resolute in its determination to deny terrorists any freedom of action and ensure that the Eid El Kabir celebrations proceed in an atmosphere of peace, safety, and dignity for all. The Theatre Command wishes the entire Muslim community a peaceful and rewarding Eid El Kabir celebration.”
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