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CBEX collapse leaves Nigerian investors reeling from ₦1.3 trillion losses

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CBEX Nigeria Cryptocurrency Scam

The sudden collapse of digital asset platform CBEX has devastated thousands of Nigerians, with reported losses exceeding ₦1.3 trillion in a suspected cryptocurrency scam

 

The sudden and catastrophic collapse of CBEX, a digital asset trading platform operating in Nigeria, has plunged thousands of Nigerian investors into despair, with reported financial losses soaring beyond a staggering ₦1.3 trillion.

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Also read: Hanu Fejiro launches free crypto training for Nigerian youth

This devastating incident starkly highlights the persistent and insidious threat posed by fraudulent investment schemes within Nigeria’s burgeoning digital finance landscape, underscoring the critical and immediate need for enhanced regulatory oversight and heightened public awareness regarding investment risks.

 

CBEX, functioning as a seemingly legitimate digital trading platform, aggressively courted investors with enticing promises of exceptionally high returns, purportedly generated through sophisticated AI-driven trading strategies.

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However, on the fateful date of April 14, 2025, the platform abruptly and without warning ceased all operational activities, effectively locking countless users out of their accounts and rendering their digital wallets completely empty.

Adding to the distress and suspicion, the platform’s official Telegram channels, which had served as primary communication conduits, were also swiftly shut down, and all pending withdrawal requests were indefinitely postponed, leaving investors in a state of utter financial limbo.

Renowned cryptocurrency expert, Mr. Taiwo Owolabi, has since revealed a deeply concerning detail: CBEX had been operating entirely outside the regulatory framework, lacking any form of registration from the Nigerian Securities and Exchange Commission (SEC).

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He meticulously explained the deceptive tactics employed by the platform, which involved manipulating user interfaces to display entirely fictitious account balances, while the actual invested funds were systematically siphoned off through a complex web of cryptocurrency transactions involving popular digital assets such as TRX (Tron), USDT (Tether), and ETH (Ethereum).

Mr. Owolabi provided a preliminary estimation of the total funds illicitly obtained, placing the figure at approximately $847 million, a number he cautioned was likely to escalate as further investigations unfolded.

Alarmingly, the Nigerian Securities and Exchange Commission (SEC) had previously issued clear and explicit warnings to the Nigerian public against engaging with and investing in unregistered digital asset trading platforms.

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The regulatory body had unequivocally emphasized that the operation of such platforms without prior and proper registration constitutes a serious offense under the Investments and Securities Act (ISA) 2025.

Despite these proactive warnings from the SEC, a significant number of Nigerian investors were tragically lured in by the seemingly irresistible promise of extraordinarily high and rapid returns, starkly illustrating a dangerous disconnect between crucial regulatory advisories and the investment decisions made by a segment of the public.

The Economic and Financial Crimes Commission (EFCC), Nigeria’s primary anti-corruption and financial crime agency, has also consistently cautioned Nigerians about the pervasive dangers of fraudulent investment schemes.

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The EFCC has repeatedly highlighted the unfortunate reality that numerous Nigerians have suffered substantial financial losses due to their involvement in various Ponzi schemes, deceptive forex trading scams, and unregulated and often volatile cryptocurrency ventures.

The sudden and devastating collapse of CBEX has had a profound and deeply personal impact on its vast number of investors, many of whom tragically entrusted the platform with their hard-earned life savings.

Social media platforms have become awash with heartbreaking stories from individuals now facing utter financial ruin, struggling to meet even the most basic of daily needs and utterly unable to fulfil essential financial obligations.

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The psychological toll of this massive financial shock is equally severe, with widespread reports of depression, crippling anxiety, and a pervasive sense of hopelessness permeating the affected investor community.

The catastrophic CBEX debacle serves as a stark and brutal reminder of the inherent and often concealed risks associated with engaging with unregulated investment platforms operating within the digital space.

It urgently underscores the critical need for a significant intensification of public education initiatives focused on enhancing financial literacy across all demographics and the paramount importance of conducting thorough and diligent due diligence before committing any funds to investment opportunities, particularly those promising returns that appear too good to be true.

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Regulatory bodies within Nigeria must urgently intensify their efforts to proactively monitor the digital financial landscape, swiftly identify and shut down fraudulent platforms before they can inflict such widespread damage, and simultaneously provide clear, accessible, and comprehensive guidelines outlining legitimate and regulated investment opportunities available to the public.

Investors, on their part, must heed the warnings issued by regulatory authorities and exercise extreme caution, avoiding any investment schemes that promise unrealistically high returns with little to no discernible risk.

The CBEX collapse stands as a poignant and cautionary tale illustrating how sophisticated digital platforms can exploit existing regulatory gaps and prey on public naivety to perpetrate large-scale financial fraud.

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As Nigeria continues its rapid embrace of digital financial services and technologies, a robust and collaborative effort between regulatory bodies, established financial institutions, and an increasingly informed public is absolutely essential to effectively safeguard against such devastating fraudulent schemes and protect the financial well-being of Nigerian citizens.

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Beyond CSR: Why Telecom Firms Are Taking Their Social Investment Into Everyday Life

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Nigeria’s telecommunications companies are increasingly moving their social investments beyond conventional donations, scholarships and community projects into areas where connectivity, digital skills and technology directly affect how Nigerians learn, work and access essential services.

The shift is evident across education, healthcare, digital inclusion and economic empowerment, with operators and their foundations increasingly deploying assets linked to their core business — networks, data, digital platforms, devices and technical expertise — to address social needs.

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The development is also reflected in the changing approach of regulators and public-sector stakeholders, who increasingly see telecommunications infrastructure as an enabler of outcomes in other sectors rather than an end in itself.

The Nigerian Communications Commission (NCC), for instance, recently launched a zero-rated educational access initiative under which eligible users will receive up to 100MB of free data daily to access approved educational platforms.

The commission said the initiative is intended to expand access to learning resources, reduce educational inequalities and support long-term economic growth through human-capital development.

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NCC Executive Vice Chairman, Dr Aminu Maida, said connectivity was essential if Nigerians were to benefit fully from digital skills and education programmes.

He also acknowledged the need to make the intervention sustainable, saying the 100MB daily ceiling was designed partly to allow government and industry to assess usage patterns before adjustments are made. The allowance is subject to periodic review.

The initiative illustrates the changing nature of telecom social investment: rather than simply providing a physical asset, operators are using their networks to remove a barrier to access.

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The model is not entirely new.

The Nigeria Learning Passport, launched by the Federal Government and UNICEF in 2022, has developed into a wider public-private digital education ecosystem.

UNICEF reported that the platform had expanded across 21 states and reached 1.8 million users by January 2025. At that time, Airtel was providing zero-rated access that allowed more than 600,000 students to use the platform without data charges.

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But connectivity was only one component. UNICEF said Microsoft provided technology infrastructure, IHS supported connectivity in 870 schools, while other partners contributed devices, offline infrastructure, teacher capacity building and learning-content development.

This broader ecosystem is increasingly shaping how telecom companies approach social investment.

MTN Foundation, for example, says it has invested more than N34.4 billion since its establishment in 2004, with projects across all 36 states and the Federal Capital Territory.

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The foundation says its interventions are concentrated on capacity building, health and economic empowerment, while its youth development portfolio provides skills, tools, knowledge and opportunities for young people to become economically active.

Its SAIL Teachers Fellowship is an example of the movement towards building capacity rather than simply providing materials. The programme has trained more than 8,700 teachers across the country, focusing on technology integration and inquiry-based learning.

MTN has also extended its social investment into healthcare through technology.

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On September 23, MTN Group Foundation and the Gates Foundation announced the Nigeria Maternal Health Multiplier, a digital health initiative that aims by 2030 to help 500,000 women access trusted maternal-health guidance, equip 5,000 frontline health workers with digital tools and support 500 health facilities.

The programme has an initial investment of approximately $25 million between 2026 and 2030, including direct and in-kind contributions from the two foundations.

The initiative combines MTN’s connectivity infrastructure and digital capabilities with the Gates Foundation’s expertise in maternal health, digital health and responsible artificial intelligence.

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For MTN, the intervention reflects an approach in which connectivity becomes part of the solution to a problem outside telecommunications.

The Gates Foundation’s CEO, Mark Suzman, also offered an insight into the thinking behind the partnership, describing philanthropy as a catalyst for investment rather than a substitute for it.

Other operators are following different versions of the same broader direction.

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Airtel’s digital-skills initiatives have included programmes aimed at improving the employability and economic opportunities of young Nigerians, while its partnership with UNICEF on the Learning Passport has used zero-rated connectivity to remove data costs from access to educational content.

The company has also historically operated more conventional social interventions, including its Touching Lives programme, which provided direct support to disadvantaged individuals and communities.

The contrast between such programmes and newer interventions illustrates the evolution rather than disappearance of conventional philanthropy.

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Similarly, Globacom has used its network capabilities in a community-development model.

In partnership with the Federal Ministry of Communications, Innovation and Digital Economy and Huawei, the company supported a Digital Village pilot at Isuanin Kura, Ibwa 2, in Gwagwalada, Abuja.

The project provides public Wi-Fi, mobile coverage and facilities intended to support remote learning and digital healthcare. Glo supplied microwave backhaul and access to its core network resources and manages the site’s operations.

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The project was designed to serve more than 12,000 residents. That figure represents the project’s intended service population, not a verified number of people already reached.

The wider policy environment is also changing.

The NCC has increasingly framed digital inclusion as a collaborative responsibility involving government, operators, infrastructure providers, development organisations and other stakeholders.

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That approach is particularly relevant as the boundaries between telecommunications and other parts of the economy become less distinct.

Education increasingly depends on connectivity. Healthcare is adopting digital tools. Small businesses rely on mobile payments and online platforms. Young people increasingly require digital skills to participate in the labour market.

Against that background, telecom philanthropy is gradually moving closer to the everyday realities of citizens.

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The shift does not mean that telecom companies are replacing government or development agencies in providing social services. Rather, their contribution is increasingly based on what they can uniquely provide — connectivity, platforms, data, technology, devices, technical expertise and access to millions of users.

MTN’s 2026 Y’ello Care campaign, for instance, focused on equitable health, with the company describing employee-led community action as extending from healthcare to education, youth development and economic empowerment.

The emerging model is therefore less about simply giving communities something and more about connecting people to opportunities and services.

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For Nigeria, where affordability and access remain major barriers to digital participation, that change could make telecom social investment increasingly relevant to everyday life — from a student accessing a lesson without paying for data to a pregnant woman receiving health information, a teacher acquiring digital skills or a young person gaining the tools needed to enter the digital economy.

The challenge, however, will be demonstrating that these interventions produce measurable and sustained outcomes beyond the announcement of a new programme.

As telecom operators increasingly deploy their core capabilities for social purposes, the measure of their contribution may ultimately shift from how much they donate to how many people can use the infrastructure, knowledge and services created through that investment.

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