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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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Court orders EFCC to pay N10m fine for defaming ex-Power Minister, Agunloye
A High Court of the Federal Capital Territory (FCT) sitting at Maitama has ordered the Economic and Financial Crimes Commission (EFCC) to pay a fine of N10million for defaming a former Minister of Power, Dr. Olu Agunloye, through a libelous publication on its social media handles.
The court, in a judgment delivered by Justice Peter Kekemeke, found that the anti-graft agency damaged the claimant’s reputation.
Agunloye, in a N10billion defamation claim he filed before the court, insisted that the publication the EFCC carried on its website and X (formerly Twitter) handle, titled: “EFCC arraigns Agunloye over $6billion fraud,” tarnished his image and occasioned reputational damage against him.
In the writ of summons marked FCT/HC/CV/1199/2024, which he filed through his team of lawyers led by Mr. Adeola Adedipe, SAN, he claimed that the agency dented his good name and dragged his integrity into the mud.
He told the court that the commission accused him of being a corrupt and fraudulent individual through the defamatory post it shared on its official website and other allied online platforms.
He prayed the court to declare that the post was false and defamatory.
Besides, he sought an order for EFCC to retract the publication against him and tender an unreserved apology.
He equally sought the award of N1billion to him as general and exemplary damages.
Delivering judgment in the matter on Wednesday, Justice Kekemeke held that the publication the claimant complained about had all the ingredients of defamation.
He held that the publication made by the EFCC was in permanent form with the name of the claimant mentioned.
The court further held that EFCC’s sole witness in the case, an Assistant Commissioner of Police, Umar Hussain Babangida, despite initially denying knowledge of the said publication, later admitted that it was from the defendant’s media department.
According to the judge, the case did not challenge EFCC’s power to investigate economic and financial crimes as claimed by the defendant.
He noted that having gone through the charge in the criminal case against the claimant before the Apo Division of the FCT High Court, there is nowhere in it that alleges fraud, contrary to the EFCC’s publication.
The court added that the issue of fraud is not in any of the exhibits tendered before it in the course of hearing the case, as stated in what it described as a “sensational headline” in the publication.
The judge held that EFCC failed to prove the truth of the said publication.
Stressing that the EFCC is not a news outlet but an investigative agency, Justice Kekemeke held that the commission knew that Agunloye was not involved in a fraud of $6billion.
The court held that the claimant successfully proved that the publication against him was accentuated by malice, and resolved issues one and two in favour of the former minister.
The court declared that the contentious publication on EFCC’s official website and X handle was false and defamatory.
It ordered the commission to retract the publication and offer a public apology to the claimant on its website and in two other national dailies.
The court further issued an order of perpetual injunction restraining EFCC from defaming the former minister.
Meantime, reacting to the judgment on Wednesday, counsel for EFCC, Dr. Wahab Shittu, SAN, said the commission would file an appeal to challenge it.
Shittu, SAN, contended that the case was premature, as the claimant’s criminal charge had yet to be concluded and judgment delivered.
“Though the court has delivered its judgment, we are definitely going to appeal the court’s decision,” he added.
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Defence minister orders troops to shoot bandits on sight
Christopher Musa, minister of defence, has ordered security personnel deployed to combat banditry and terrorism to take immediate action against armed criminals.
He warned that any operative who fails to engage bandits or terrorists under the guise of awaiting orders would be regarded as an accomplice.
Musa issued the directive on Wednesday in Sokoto during the commissioning of 62 operational vehicles and security equipment valued at N27.127 billion, procured by the Sokoto State government to strengthen security operations across the state.
Addressing troops and other security personnel, the defence minister stressed that operatives already deployed to conflict zones have the authority to confront armed criminals without waiting for further directives.
“Once you are deployed, do not wait for any order from anybody to shoot any bandit or any terrorist.
“Anybody who refuses to shoot or kill any bandit or terrorist in the name of waiting for an order, we will treat you like a bandit,” Musa said.
His remarks come amid renewed efforts by the federal government to intensify military operations against armed bandits and terrorist groups operating across the North-West and other parts of the country.
Musa described the commissioning of the security assets as more than the unveiling of equipment, saying it reflected strategic leadership and a shared commitment to strengthening Nigeria’s security architecture.
“This event is not merely the unveiling of security assets. It is a demonstration of strategic leadership, responsible governance and our collective determination to strengthen the security architecture of Sokoto State and Nigeria as a whole,” he said.
The minister commended Ahmed Aliyu, the governor, for sustaining logistical support to security agencies, describing the governor’s investment in security as a model worthy of emulation.
Identifying himself as “a proud son of Sokoto”, Musa said the state had remained relatively peaceful because of strong collaboration among the government, security agencies and local communities.
He noted that the newly commissioned armoured vehicles and tactical equipment would enhance operational mobility, intelligence gathering and force protection in the ongoing campaign against banditry, terrorism and kidnapping.
The defence minister also urged security agencies to ensure proper maintenance and effective deployment of the newly acquired assets.
“This equipment costs billions of naira. We don’t want to hand them over and then you throw them away or mishandle them. They must serve the purpose for which they were procured,” he said.
While calling for decisive action against criminal groups, Musa reminded security personnel to uphold professionalism and respect the rights of law-abiding citizens.
“You are not to go there and extort or harass the people. You are there to protect them and work with them to eliminate bandits and terrorists operating within your area,” he added.
Earlier, Aliyu said the latest procurement formed part of his administration’s sustained investment in improving security since assuming office.
According to him, the state purchased bulletproof vehicles, Buffalo Armoured Personnel Carriers (APCs), 320 motorcycles, 3,200 security gadgets, 2,000 bulletproof helmets and protective vests, 200 night-vision goggles, thermal devices and other tactical equipment.
“In all, we are distributing 62 vehicles and the security equipment highlighted above. These vehicles and security equipment cost the Sokoto State Government N27.127 billion,” the governor said.
Aliyu disclosed that his administration had already committed more than N36 billion to security interventions, including the construction of military and police barracks, procurement of operational vehicles and motorcycles, establishment of the Sokoto State Community Guard Corps and support for the Nigerian Air Force Base in the state.
The governor also revealed that his administration had transmitted a bill to the Sokoto State House of Assembly seeking tougher penalties for informants who aid bandits and other criminal elements.
“The bill is currently before the State House of Assembly, and once it is passed, we will sign it without any further delay,” he said.
He further announced the approval of a Command and Control Centre aimed at strengthening surveillance, intelligence sharing and coordination of security operations across Sokoto.
Aliyu appealed to residents to continue providing credible intelligence to security agencies, stressing that defeating insecurity requires active collaboration between the government, security forces and the public.
“Security is a collective responsibility, and together we shall overcome every security challenge confronting our state,” he said.
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