Senate Takes Action Against Financial Predators: Probe into ₦1.3 Trillion Civics Scam
Senate has launched an investigation into the operations of Ponzi schemes in the country, following the collapse of Crypto Bullion Exchange Civics, a fraudulent digital scheme that allegedly defrauded over ₦1.3 trillion from unsuspecting Nigerian citizens.
The move is sequel to a motion, moved by Senator Mukhail Adetokunbo Abiru (Lagos East) and co-sponsored by Senator Osita Bonaventure Izunaso (Imo West) on the floor of the Senate on Wednesday in Abuja.
Presenting the motion, Senator Abiru informed that the Civics incident was part of an emerging trend of online Ponzi and pyramid schemes that use technology, social media, and even celebrity endorsements to lure Nigerians into investing in fraudulent ventures that promise exorbitant returns.
He described the Civics scandal as “one of the most devastating financial scams in the country’s history,” and expressed shock that it was able to operate in full public view without any intervention from Nigeria’s key financial regulators, the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU).
Abiru emphasized that while the Constitution empowers the National Assembly to investigate matters affecting national interest and citizen welfare, the regulatory agencies must be held accountable for failing to protect the Nigerian public from this massive financial crime.
The Lawmaker lamented that the collapse of schemes like Civics has devastating effects on Nigerians, including students, low-income earners, and rural dwellers, with many losing everything and some even driven to depression and suicide.
In their contributions during the debate on the motion, the Senators expressed outrage over the failure of regulatory agencies to protect Nigerians from these massive financial crimes.
Senator Abdul Ningi (Bauchi Central) described the situation as a national tragedy and a failure of government oversight.
Senator Ningi also noted that the magnitude of losses suffered through Civics and other online schemes threatens foreign direct investment in Nigeria.
Senator Sani Musa (Niger East) stated that these schemes are not just economic exploitation but also psychological warfare against the people.
Senator Solomon Adeola (Ogun West) warned that Ponzi-style platforms are only one part of a broader wave of unregulated fintech and payment gateway frauds taking root in Nigeria.
He urged the Senate to question the CBN on what digital safeguards and frameworks it has instituted to oversee financial technology platforms.
The Senator after their submissions unanimously supported and adopted the motion to investigate Ponzi schemes and regulatory lapses over the unchecked proliferation of financial frauds.
In his conclusion, the Senate President, Godswill Akpabio praised the sponsors of the motion and emphasized the urgency of restoring public trust and economic stability.
“This motion speaks to the soul of the nation. If it doesn’t affect you directly, it affects your family, your friends, your constituents,” Akpabio said. “Many of these frauds date back decades.
“The same cycle keeps repeating, people invest, platforms collapse, and there is no accountability. This must end now” he decries.
The Senate therefore mandate its Joint Committees on Capital Markets; Banking, Insurance and Other Financial Institutions; Anti-Corruption and Financial Crimes; and ICT and Cybersecurity to conduct a comprehensive investigative hearing on the operations of Ponzi schemes in Nigeria and examine regulatory gaps and lapses,
Launch a nationwide public sensitization campaign to educate Nigerians on digital investment scams and financial literacy.
According to them, unless Nigerians are educated and regulators are held accountable, more lives and livelihoods will continue to be destroyed.
Examine the regulatory gaps and lapses that allowed schemes like Civics to thrive unchecked and recommend robust legislative and institutional reforms to prevent future occurrences.
The Committee should also Investigation’s findings are expected to guide future legislation and possibly lead to disciplinary actions or restructuring of the roles of financial regulators.
The Senate agreed that the Committee must not only investigate the frauds but also engage in zonal public hearings and education campaigns to enlighten Nigerians about the risks of online financial schemes and the importance of regulatory compliance.
The Committees were directed to begin work immediately and report back to the Senate in four weeks.
Their findings are expected to guide future legislation and possibly lead to disciplinary actions or restructuring of the roles of financial regulators, pointing out that the situation is not just about money but about national security, public trust, and collective responsibility to protect every Nigerian from predators masquerading as investors.