Nigerians have lost an estimated N4.8 trillion (approximately $2.99 billion) to various scams since 2016, according to findings by Paul Alaje, a renowned economist and Chief Economist at SPM Professionals.
Alaje disclosed this after the collapse of Crypto Bridge Exchange (CBEX), a digital asset investment platform on which more than 600,000 Nigerian investors reportedly lost N1.3 trillion.
He explained that when the depreciation of the naira is factored in, total losses from scams since 2016 climb to nearly N8 trillion (about $5 billion).
CBEX operated as a classic Ponzi scheme, promising investors a 100% return on investment within 30 days. As with many fraudulent schemes, early investors received returns, which in turn drew thousands more into what they believed was a legitimate operation.
Meanwhile, INDEPENDENT quoted Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), revealing that CBEX was never registered with the regulatory body, a major factor that hindered regulatory oversight.
He further disclosed that despite CBEX operating for nine months, no formal complaints were lodged with the SEC until after the collapse, limiting the agency’s ability to act preemptively
