Until Nigerians Learn, Scams Will Never End

By Yusuf Ahmed Baba

Nigeria has become a playground for fraudulent investment schemes, wonder banks, and cyber scams. Time and again, citizens driven by desperation, greed, or plain ignorance have poured their savings into platforms promising impossible returns.

The script rarely changes: early payouts create an illusion of legitimacy, glowing testimonials flood social media, more victims are lured in, and then the platform collapses. When the dust settles, life savings are gone and public trust in the financial system takes yet another blow.

The April 2025 implosion of CBEX (Crypto Bridge Exchange) stands as the latest cautionary tale. The platform allegedly pulled in over ₦1.3 trillion with promises of 100 percent returns in just 45 days.

Early investors received token payouts, lending the scheme credibility, but as always, the façade could not hold. The collapse was staggering in scale, yet hardly new. In 2019, EFCC operatives in Port Harcourt uncovered Bluekey Investment Club, a so-called “wonder bank” that swindled citizens of ₦2 billion while parading as a CAC-registered company.

In Enugu, the notorious “Let’s Partner With You Ltd.” duped investors of more than ₦4 billion. Such scams thrive because they exploit the same vulnerabilities: financial illiteracy, economic hardship, and the get-rich-quick mentality.

The forms differ—phishing attacks that strip bank details, romance scams that prey on emotions, or the age-old “419” advanced fee fraud—but the outcomes rarely change. Victims lose; fraudsters vanish. Even foreigners have joined the racket.

In May, police arrested a Canadian and his Nigerian accomplice over a fraudulent $210,000 investment scheme. Yet amid this bleak record, a shift is underway. The Central Bank of Nigeria has begun erecting guardrails to make it harder for scams to thrive.

With initiatives like the Non-Resident Nigerian Investment Account (NRNIA) and the Non-Resident BVN (NRBVN), the apex bank is formalizing the very channels through which diaspora funds and investments flow. These reforms are more than technical fixes; they represent a systematic effort to cut off the shadow networks that fraudsters exploit.

By ensuring remittances are routed through regulated accounts and tightening International Money Transfer Operator (IMTO) guidelines, the CBN is both boosting foreign inflows and shrinking the space for illicit platforms to pose as legitimate investments.

The emphasis on Know Your Customer (KYC) protocols, mandatory BVN registration, and market-driven exchange rates directly tackles vulnerabilities that Ponzi promoters exploit. In the past, a fraudster needed little more than a flashy website and loud advertising to reel in victims.

Under tighter rules, genuine financial institutions must now comply with CBN and SEC oversight, making it easier for the public to verify authenticity. This does not eliminate risk, but it significantly narrows the avenues for large-scale deception.

Still, regulation cannot replace vigilance. Fraud is as much about human behavior as loopholes. People are drawn to the promise of high returns without risk, and no rulebook can cure greed or desperation.

Nigerians must take responsibility for due diligence: if you do not understand a business model, do not invest. If a scheme promises to double your money in 30 days, treat it as a red flag, not an opportunity. Registration with the CBN or SEC is the bare minimum any financial platform should prove before you part with a kobo.

Banks constantly warn customers never to disclose passwords or OTPs. Two-factor authentication, skepticism toward unsolicited emails, and resistance to high-pressure pitches remain simple but powerful defenses. Fraudsters no longer operate from dingy backrooms; they now rent offices, wear suits, and even hire social media influencers to launder credibility.

But gloss does not equal legitimacy. The lesson is clear: scams prosper where ignorance and desperation intersect with weak oversight. The CBEX collapse and earlier wonder banks prove that even the most sophisticated façades eventually crumble under scrutiny.

The CBN’s reforms are plugging gaps in the formal system, while the EFCC and law enforcement pursue perpetrators. But prevention begins with individual skepticism. Every Nigerian—whether youth, retiree, trader, or professional—must understand that financial fraud is no longer a distant crime.

It lurks in inboxes, on social media, and behind the next too-good-to-be-true advertisement. Regulation can build stronger walls, but citizens must stop opening the gates. Vigilance, verification, and refusal to fall for false promises remain the surest defenses.

In a country where scams recycle every few years under new branding, awareness is not just advice; it is survival.

Yusuf Ahmed Baba is an intern with PRNigeria. He can be reached via: [email protected].