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Senate probes Ponzi schemes as EFCC uncovers N1.3tn linked to CBEX fraud+Photos
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The Senate Committee on Banking, Insurance and Other Financial Institutions on Wednesday launched a probe into the operations of Ponzi schemes in Nigeria, following revelations by the Economic and Financial Crimes Commission (EFCC) that about N1.3 trillion was linked to the collapsed Crypto Bullion Exchange (CBEX) scheme.

The disclosure was made during a one-day public hearing on a motion to investigate Ponzi schemes in Nigeria, with particular reference to the recent CBEX incident, alongside deliberations on a bill seeking to amend the Banks and Other Financial Institutions Act (BOFIA 2020).
Chairman of the Committee, Senator Mukhail Adetokunbo Abiru, said the amendment bill and investigative hearing were aimed at closing regulatory gaps exploited by unlicensed digital platforms and fraudulent investment operators.

Speaking at the hearing, the Executive Chairman of the EFCC, Olanipekun Olukoyede, was represented by Dein Whyte, Cybercrime Section Supervisor of the commission, who presented detailed findings of the agency’s investigation into CBEX and other emerging Ponzi schemes.
Whyte told lawmakers that CBEX, also known as Crypto Bullion Exchange, began operations in mid-2024 and promised investors 100 per cent returns using artificial intelligence-driven crypto trading.
According to him, while initial estimates placed investor exposure at N1.3 trillion, blockchain analysis traced over $46 million in stablecoin (USDT) inflows into identified wallets linked to the scheme.

“The promoters ensured that victims converted their naira into digital assets before investing, thereby avoiding direct cash trails,” he said.
Whyte disclosed that the platform operated through aggressive online and physical promotions, even holding conferences and registering a special purpose vehicle with the Corporate Affairs Commission under a different name.
He added that investigations uncovered Nigerian promoters working with foreign collaborators based in Southeast Asia. Some digital infrastructures have been seized, certain funds frozen, and Nigerian promoters are currently facing prosecution for operating an unlicensed exchange.
The EFCC also clarified that the operators had obtained an onboarding certificate from its Special Control Unit Against Money Laundering but falsely presented it as full regulatory clearance.
During the session, several senators raised concerns about the increasing use of fintech platforms such as Opay and Moniepoint by fraudsters and kidnappers to receive illicit funds.
The Chief Whip of the Senate recounted a personal experience of attempted digital fraud, questioning why such platforms appear to be preferred channels for criminal transactions.
In response, a representative of Moniepoint attributed its popularity to accessibility, affordability and instant transaction confirmation. However, he acknowledged challenges in tracing funds where individuals sell their identities or allow their accounts to be used by third parties.
He assured lawmakers that the company plans to expand its physical branch presence nationwide before 2028 to strengthen accountability and customer complaint mechanisms.
Stakeholders at the hearing broadly supported the BOFIA amendment but cautioned against regulatory overlaps. Financial operators urged the committee to harmonise new reporting requirements with existing Central Bank of Nigeria obligations to avoid duplication.
Some lawmakers also flagged potential conflicts between the proposed amendments and provisions of the Nigerian Communications Act, recommending a technical review to eliminate inconsistencies.
The committee resolved to constitute a technical team comprising regulatory experts, legal practitioners and financial sector stakeholders to review submissions and fine-tune the proposed legislation.
Senator Abiru emphasised that the objective is to produce “a conclusive and useful legislation” capable of strengthening Nigeria’s financial ecosystem, enhancing consumer protection and preventing future large-scale investment fraud.
The public hearing comes amid growing concerns over digital investment scams, with the EFCC warning that despite repeated advisories, Nigerians continue to patronise high-yield schemes promising unrealistic returns.
Lawmakers said the outcome of the investigation would inform stronger regulatory safeguards to restore confidence in the country’s financial system.
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Human Trafficking: Remi Tinubu calls for vigilance, support for survivors
The First Lady, Oluremi Tinubu, on Thursday called on Nigerians to be more vigilant in the protection of vulnerable persons from human trafficking and traffickers.
Tinubu, in a statement she personally signed as part of the celebration of the “World Day Against Trafficking in Persons”, appealed to the global community to strengthen commitment to ending human trafficking in all its forms and protecting the dignity, freedom, and rights of every individual.
She noted that this year’s theme, “Trapped Behind the Scam,” draws attention to the growing threat of human trafficking.
Human trafficking now forms part of modern-day slavery, which is usually perpetrated through online scams, forced criminality, and transnational organised crime.
According to her, the theme also highlights the need to increase public awareness, prevention, enforcement of our laws, and support for survivors.
“Let us remain vigilant, protect the vulnerable, and ensure that no one falls victim to exploitation. Through collective action, we can build a safer society where every person can live in freedom, dignity, and hope.
“We say “No” to human trafficking today”
Also as part of the International Day of Friendship, the First Lady also drew global attention to the power of friendship to unite people, strengthen communities, foster peace, understanding, and mutual respect.
She noted that no matter how far technology advances, man was never created to be alone, adding that ” As we become more connected digitally, human isolation is increasing by the day. We are emotional beings, and we should never underestimate the power of genuine human connection.
“Friendship reminds us to be our brother’s keeper, to show kindness, and to reject unhealthy behaviours that divide us. A simple act of kindness can heal a broken heart and help in making our world a better place”.
She therefore charged Nigerians to ” Go out there, give someone a smile, reach out with compassion, and be a friend”.
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Oriire: Makinde sets up judicial panel to probe children, teachers’ abduction
Governor Seyi Makinde of Oyo State has set up a Judicial Commission of Inquiry to investigate the abduction of pupils and teachers from Esinele and Yawota communities in Oriire Local Government Area.
Dotun Oyelade, the Commissioner for Information and Civic Orientation, made this known in a statement on Thursday in Ibadan.
Mr Oyelade said that the commission was expected to determine the circumstances surrounding the abduction and identify the factors that led to the security breach.
He said that the panel, which would be inaugurated on Friday, was also tasked with making recommendations to prevent a recurrence.
“The commission will examine the events leading to the kidnapping, assess the response of relevant authorities, and recommend measures to improve security and safeguard schools and communities across the state,” Mr Oyelade said.
He further explained that the setting up of the panel was in line with the governor’s commitment to ensuring a thorough and independent investigation into the incident.
The abduction occurred on May 15, while the abducted pupils and teachers were rescued after 56 days in captivity.
(NAN)
News
‘Security threats record sixfold rise in Nigeria, others in two years’
The United States has warned that Nigeria and other African countries are facing a more than sixfold rise in security threats in the last two years, citing a dramatic surge in illegal narcotics trafficking and human trafficking on the continent.
This is even as it listed Nigeria, Kenya and Côte d’Ivoire as key partners for its new technical assistance programme for bankable infrastructure in Africa, which would help the countries develop projects that attract U.S. participation.
Brigadier General Paul G. Filcek, Director of Logistics at U.S. AFRICOM, disclosed this during a digital press conference with African journalists on the ongoing 2026 Africa Logistics and Communications Symposium, co-hosted with the Ethiopian Ministry of Defence.
The 4-day symposium brought together delegates from 39 African nations and 27 private-sector partners under the theme “Forging Partnerships, Driving Innovation, and Enhancing Collective Readiness”.
“Across the African continent, we face growing and converging threats on our mutual security, safety and prosperity, human trafficking and a dramatic rise in illegal narcotics trafficking, now more than six times what it was just two years ago,” Gen. Filcek said.
He stressed that defeating the threats would require cooperation, coordination, reliable and effective communications as well as the ability to move personnel, equipment and supplies quickly across difficult terrain, often over great distances and challenging conditions.
For the first time, the symposium deliberately combined logistics and communications into a single conference, which Flicek described as a decisive edge in modern military operations.
Also speaking, U.S. Deputy Assistant Secretary of Commerce for Middle East and Africa, Mark Mitchell, disclosed that the Departments of Commerce and State were working together on a project termed Technical Assistance for Bankable Infrastructure in Africa that supports African governments to develop bankable projects that can attract U.S. participation and deliver local value. “It’s a model designed to empower African partners rather than create dependency,” he said.
He cited U.S. investment partnerships with Nigeria, Kenya and Cote d’Ivoire as examples of Washington’s commitment to open, competitive and transparent markets that protect sovereignty and unlock innovation.
“Our work on commercial diplomacy, data governance and investment partnerships with countries such as Kenya, Nigeria and Cote d’Ivoire reflect a commitment to fair regulatory environments that unlock innovation and protect sovereignty,” he said.
On what sets the U.S. apart from other global partners, Mitchell said Washington brings high-quality finance, trusted standards, risk mitigation tools that help move projects from concept to bankable reality.
He added that the U.S. partnership was rooted in long-term, enterprise-driven, not one-off transactions, with U.S. companies bringing world-class technology in logistics and communications that could help African nations build the security and stability needed for growth.
Mitchell also highlighted the Strategic Infrastructure Investment Working Group launched earlier this year by the U.S. State Department and the African Union, adding that the Department of Commerce was well-positioned to support it.
Addressing questions on technology, Mitchell said Artificial Intelligence could transform African logistics through route optimisation, predictive fleet maintenance and faster customs processing.
He stressed that real AI sovereignty for African countries means “owning and using best-in-class technology for the benefit of your people and nation,” rather than trying to build entire systems in isolation.
“Keep your data yours. American companies can build large, independent AI infrastructure with secure and robust supply chains that minimise backdoor risk, plus cryptographically protect confidentiality, and world-leading security to keep sensitive logistics and trade data within your borders and under your control,” he said.
Gen. Filcek said U.S. AFRICOM was assessing partner readiness through its A3I programme, which provides targeted military engagement to address urgent operational needs and expand capacity for independence and regional interoperability.
“The most significant advances will come through the acceleration of modular expeditionary capabilities… Investments in local supply chains, infrastructure and secure trade corridors will provide the most profound impact,” he added.
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