The Business NG - April 16, 2025

Bu sayıda

Expanded Description of Today’s Editorial – Business Hallmark
Title: "Ponzi Nation: The Relentless Cycle of Financial Scams in Nigeria"
By Niyi Jacobs

In today’s editorial, Business Hallmark turns the spotlight on the latest financial heartbreak for thousands of Nigerians — the sudden collapse of Crypto Bridge Exchange (CBEX), a so-called AI-powered cryptocurrency trading platform that promised users the ability to double their investments with minimal effort. CBEX abruptly shut down in April 2025, disappearing with billions of naira in investor funds and leaving many Nigerians financially stranded, with individual losses ranging from N500,000 to over N2 million.

The editorial examines CBEX as part of a larger and deeply troubling pattern of Ponzi-style scams that have plagued the country for over a decade. From the infamous MMM scheme in 2016, which drew in over three million Nigerians with promises of 30 percent monthly returns before collapsing with an estimated N18 billion in losses, to other fraudulent platforms like Ultimate Cycler and Twinkas, the narrative is depressingly familiar: unrealistic returns, rapid growth driven by referrals, and sudden disappearances.

By dissecting these past and present scams, the editorial emphasizes how these schemes thrive by exploiting the economic desperation of ordinary Nigerians and the widespread trust deficit in formal financial institutions. The piece makes a strong case for urgent regulatory intervention, improved digital financial literacy, and public awareness campaigns to protect vulnerable citizens from falling prey to these get-rich-quick traps.

More than a warning, the editorial is a call to action — urging authorities to crack down on fraudulent platforms and urging Nigerians to approach high-return promises with skepticism. It is a sobering reminder of the price many continue to pay in the pursuit of financial relief in a struggling economy.