In brief
Following a disheartening financial crisis, Nigerian investors are expressing their frustrations on social media after being locked out of their CBEX accounts, leading to chaos and fears of substantial losses.
Angry Nigerians are turning to social media to voice their frustration over their inability to access funds on the digital investment platform, CBEX. Users have shared videos of their distress, fearing they may have lost their savings entirely. In an extreme display of anger, some customers ransacked a CBEX office in Ibadan, making off with furniture and electronic goods. CBEX, which once promoted the enticing potential for investors to double their money each month, has not issued a public response to the crisis. The situation has emerged against the backdrop of an already struggling economy in Nigeria, where many are scrambling to find ways to supplement their incomes. Investment tales like that of an investor named Ola underscore the worries felt by many—Ola stated he was set to withdraw his 450,000 naira ($280; £210) investment just a week prior to the incident but was advised to hold off by a friend. Reports of lost investments are rampant, with some individuals claiming losses as significant as $16,000. While users first discovered issues over the weekend, outrage reached a peak when they continued to be unable to access their accounts by Monday. CBEX reportedly informed customers on Telegram that a hacking incident was to blame for the lockout, although the Nigerian Securities and Exchange Commission (SEC), charged with regulating investment platforms, has yet to provide an official comment. The SEC has previously cautioned about the perils of investing in unregulated digital platforms, which can often resemble Ponzi schemes.This incident echoes the traumatic events of 2016, when a different investment platform, MMM, froze its transactions, leaving countless Nigerians in financial distress after promising returns of 30% in just 30 days. At its peak, MMM boasted up to three million users before collapsing, adding to the skepticism surrounding such investment promises in the country today.
