The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have pledged a strong crackdown on unregistered and fraudulent investment platforms.
This is in response to the collapse of CBEX, a digital investment platform which has been accused of defrauding Nigerians of over ₦1.3 trillion.
CBEX, which stands for “China Beijing Equity Exchange,” promised investors a 100% return within 30 days and attracted thousands before reports surfaced of failed withdrawals and vanished account balances.
Investigations revealed no link between the platform and the actual Chinese body, and it only began operations in Nigeria recently, contrary to claims of having operated since 2017.
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The SEC has since confirmed that CBEX was neither registered nor authorized to function in Nigeria’s capital market. The platform has reportedly shut down withdrawals, locked its Telegram channels, and bizarrely offered a $2,000 payout in exchange for a $200 verification fee, raising further concerns about its legitimacy.
The Economic and Financial Crimes Commission (EFCC), alongside Interpol, has launched a probe to trace missing funds and individuals behind the scheme. Meanwhile, angry investors have stormed CBEX offices in Lagos and Ibadan, looting furniture and equipment in frustration.
SEC Director-General, Dr. Emomotimi Agama, emphasized that digital platforms must be registered to operate legally and warned that even influencers and celebrities endorsing unregistered platforms or meme coins could face consequences.
Agama explained that ISA 2025 was signed to encourage innovation in the fintech space while ensuring compliance and investor protection. He stated that operators of such schemes could face up to 10 years in prison and a ₦40 million fine under the new law.
Overall, the SEC has urged Nigerians to verify the registration status of platforms before investing and promised to use its expanded powers to restore public confidence in the financial system.
