Beyond the Crash: 5 Hard Lessons Nigerians Must Learn from the CBEX Ponzi Scheme

The crash of CBEX few days ago has left thousands of Nigerians devastated and over ₦1.3 trillion in savings vanished. The platform, which promised fast returns on digital asset trading, turned out to be a classic Ponzi scheme. As stories of losses and regrets flood social media, it is time to shift the focus from blame to learning.

Read Also:

CBEX: How Nigeria’s digital dream became nightmare

Why Many Nigerians fall for ponzi schemes: what the Govt and SEC must do

If Nigeria is to avoid another financial disaster, these five lessons must be taken seriously by both the people and the government.

1. If it sounds too good, it might be probably it: CBEX promised up to 100 percent profit in 30 days, a number that should have immediately raised red flags. No legitimate investment, anywhere in the world, offers such astronomical gains with little to no risk. The age-old truth remains: high returns always come with high risk. Nigerians must understand that sustainable wealth is built gradually, not overnight.

1. Verify Platforms with SEC or CBN: Before putting money into any financial venture, it is critical to check whether the company is registered with the Securities and Exchange Commission (SEC) or regulated by the Central Bank of Nigeria (CBN). These bodies provide public directories of licensed operators. If a platform is not listed, it is likely operating illegally, and that means zero protection for your money. CBEX had no licence, no local registration, and no accountability.
2. Do Not Trust Hype Over Facts: Social media played a massive role in the spread of CBEX. Influencers showed off flashy cars, luxury holidays, and testimonials that made it seem like everyone was getting rich. But much of that was staged or paid promotion. Real investments do not need viral marketing or empty promises. Nigerians must learn to question the source of information and demand transparency over trendiness.
3. Financial Literacy Is Survival: One of the core reasons so many Nigerians fell for CBEX was the lack of basic financial education. Many do not understand the difference between real investing and speculation. Schools, media outlets, and the government must invest in financial literacy programmes that teach people how money, risk, and investment systems work. Being financially informed is no longer a luxury; it is a survival tool.
4. Regulators Must Act Faster and Smarter: While individuals must take responsibility, regulatory bodies failed by not acting quickly enough. The SEC issued its warning only after CBEX had already collapsed. Nigeria needs proactive monitoring systems to detect, investigate, and expose suspicious platforms before they go viral. Technology can help regulators track suspicious online platforms in real time and issue early warnings to the public.

The CBEX collapse should be a turning point, not just another news story. It exposed vulnerabilities in our systems, our trust, and our knowledge. If Nigerians, both individuals and institutions, internalise these lessons, we can turn this painful experience into a moment of transformation. Let CBEX be the last of its kind.