Outrage In Nigeria Over Ponzi Scheme Failure, Millions Lost

Outrage In Nigeria Over Ponzi Scheme Failure

 

OpenLife News reports that panic and anger have swept across Nigeria after online investment platform PXES abruptly stopped paying returns and shut down, leaving thousands of Nigerians who invested millions of naira counting their losses.

The platform stopped paying participants in early September, with investors who committed amounts from tens of thousands to millions of naira left stranded.

Many have been unable to reach the operators.The collapse has triggered outrage, with aggrieved investors in Adamawa and Kogi states storming and looting PXES offices in a desperate bid to recover their money.

Outrage in Adamawa and Kogi

Videos circulating online showed people removing chairs, tables and other items from the company’s premises in Yola. Similar scenes played out at the Kabba office. In one video, a man who said he invested about N209,000 was seen crying over his inability to recover his funds.

The Kabba manager had earlier sent a message assuring investors of compensation, but three days later the office was shut and the operators disappeared.”How we were scammed” –

Victims speak
Bunmi Awodipe said she invested N200,000 after friends showed her proof of payments.

“They paid me N7,000 every week for three weeks. When I went to their office last week, it was locked and empty,” she said. Deji Mulero registered with N65,000 on September 4. “It crashed the same Friday. That was how I lost my money,” he said.

Wale, who registered with N207,000, said he had almost N600,000 in his dashboard before the platform went offline.

For 68-year-old Jumoke Talabi, the investment was meant for her granddaughter’s school fees. She invested N64,800 after receiving an initial N70,000 payout.
“It’s poverty that made me do it. The money is meant for school fees. I thought I would buy rice and eat,” she lamented.

How PXES Worked
Interviews and promotional materials showed PXES operated a tiered system: Star 1 – N21,600, Star 2 – N54,800, Star 3 – N207,000. Members were given access to a dashboard to complete daily “orders” of household items, similar to e-commerce sites.

The platform initially allowed daily withdrawals, later switching to weekly. Promotional materials claimed N21,600 could yield N259,200 in 360 days and N64,800 could yield N777,600 — returns many times the original investment.

At events, PXES representatives described the company as a “digital marketing and advertising firm” partnering with Amazon and eBay, not an investment platform.

Questions over authorisation
Financial experts warned Nigerians to verify licences before investing.
“CAC registration does not mean a company can take investment funds. Ask for SEC licence,” said analyst George Samuel.

Banker Kemi Junaid said promises of high, guaranteed returns are major red flags.EFCC spokesperson Dele Oyewale said the commission would investigate if formally reported. “We have issued several advisories against Ponzi schemes. Do due diligence before investing,” he said.

A recurring cycle
The PXES collapse comes less than two years after CBEX crashed with alleged losses of N1.3tn, and after similar failures like EMAAR and XM Future Music Group.As of press time, the PXES website, WhatsApp channel and Facebook page were all inactive.