The Economic and Financial Crimes Commission (EFCC) has cautioned Nigerians against the dangers of unchecked greed, warning that it fuels susceptibility to fraudulent investment platforms. Issuing a terse advisory on its official X (formerly Twitter) handle yesterday, the anti-graft agency urged citizens to be vigilant, stating, “Love money too much, and Ponzi schemes will love you as their next target; be guided. The Eagle loves you all.”
This warning came as the fallout from the collapse of CBEX, a digital investment platform that reportedly wiped out over N1.3 trillion in investors’ funds, continued to spread shockwaves across the country. The Securities and Exchange Commission (SEC) has since denied registering CBEX, reinforcing concerns over the proliferation of unregulated investment schemes.
At the 30th Annual General Meeting (AGM) of the Chartered Institute of Stockbrokers (CIS) in Lagos over the weekend, the President and Chairman of Council, Oluropo Dada, sounded a similar alarm. He warned investors to exercise extreme caution, stressing that any investment product not duly registered with the SEC should be considered a Ponzi scheme.
“Any unregistered investment scheme is Ponzi,” Dada emphasised. “They often disguise themselves as legitimate platforms but are ultimately engineered to swindle hardworking Nigerians. Platforms promising fast, guaranteed returns are classic red flags.”
Dada further urged Nigerians to verify the registration status of any investment opportunity through the SEC before committing their funds. He also highlighted the institute’s 2024 initiatives to reposition the securities profession, particularly through the ‘Catch Them Young’ campaign, which seeks to attract young Nigerians into the capital market via partnerships with tertiary institutions and the introduction of specialised degree programmes.
Meanwhile, enforcement actions against those connected to the CBEX scandal are intensifying. Over the weekend, the EFCC declared eight individuals wanted for their alleged roles in the fraudulent scheme. This followed the Federal High Court in Abuja granting EFCC’s request to arrest and detain CBEX promoters pending the conclusion of investigations.
Justice Emeka Nwite issued the detention order after EFCC’s counsel, Fadila Yusuf, presented findings indicating that ST Technologies—although registered with the Corporate Affairs Commission (CAC)—was not licensed by the SEC to operate any investment activities.
The EFCC and CIS have thus reiterated the need for Nigerians to stay vigilant and avoid get-rich-quick platforms, emphasising that only verified, SEC-licensed investment avenues can offer any real financial security.
