Ponzi scheme

By Sabiu Abdullahi

Nigerians who put their money into an online platform known as PXES have been left counting their losses after the platform stopped paying returns and became inaccessible, The Punch newspaper reports.

The development has sparked anger among participants who invested amounts ranging from tens of thousands of naira to millions of naira. Some frustrated investors reportedly stormed PXES offices in Adamawa and Kogi states, where they removed office furniture and other items.

The platform reportedly stopped paying participants in early September, leaving several investors unable to withdraw their funds or establish contact with its operators.

PXES had attracted participants with claims of substantial returns. Reports indicated that some packages promised returns of between 25 per cent and 50 per cent, while certain packages reportedly offered as much as 120 per cent.

The reported returns could not be independently verified.

Investors Storm Offices In Adamawa, Kogi

In Adamawa and Kogi states, some investors reportedly visited PXES offices after attempts to withdraw their money failed.

Videos shared online showed people removing chairs, tables and other items from a PXES office in Yola. Similar scenes were reported at the company’s office in Kabba.

One video showed a man, who reportedly invested about N209,000, crying over his inability to recover his money.

The Kabba manager had reportedly sent a message to investors after the payment difficulties began, assuring them that the management would compensate them for their patience.

However, the office was allegedly shut three days after the message was sent. Investors were subsequently left without clear information about the operators or the whereabouts of their funds.

‘They Showed Me Evidence’

One of the investors, Bunmi Awodipe, said she entered the scheme after three friends showed her evidence that they were receiving returns.

Awodipe said she invested N200,000 and initially received N7,000 weekly.

“They told me they invested money in PXES and were receiving their payments. They showed me evidence, so I decided to invest N200,000 and was receiving N7,000 every week. They only paid me for three weeks.

“When I went to their office last week, I didn’t see anyone. The place was locked and there was nothing in the office. Everything was removed,” Awodipe said.

Another participant, Deji Mulero, said he was introduced to PXES by one of his customers.

“It’s one of my customers who introduced this thing to me on September 4. I registered with N65,000 and it crashed the same Friday. That was how I lost my money,” he said.

Another investor who identified himself as Wale said he had accumulated almost N600,000 on his account before the platform stopped operating.

“Been there for some months. Registered with 207k, now on first stage supervisor. Got close to 600k already on that account. My friend in Abuja introduced the scheme to me,” Wale said.

For 68-year-old Jumoke Talabi, the money was intended to support her granddaughter’s education and household expenses.

Talabi said she invested N64,800 after seeing other participants receive payments. She said the platform had previously paid her N70,000, which encouraged her to increase her investment.

She expected another payment when the next withdrawal date arrived.

“I was meant to collect N18,000 before school resumes, and I thought that I would finish collecting all my profit. But so far, I have not collected any money.

“When they said we should withdraw on Friday, I was dancing. I told my brother that the money did not enter my account, but I was told it would hit my account in the evening. I was looking forward to it. They didn’t even pay me my N64,000. One of my friends doesn’t know what to do or where to go. She has been crying,” she recalled.

Explaining why she invested despite the risks, Talabi said, “It’s poverty that made me do it. If not poverty, I would not, because the money is meant for school fees. I thought that maybe, I would see some to buy rice and eat.”

Shola Adeshina, whose wife also invested in PXES, said the platform became attractive because of claims that small investments could generate substantial returns.

He said stories about participants who allegedly used their earnings to buy cars and build houses made the scheme more appealing.

“Stories of participants using proceeds from the platform to buy cars and build houses further increased its appeal.

“The situation became alarming when a couple who invested millions of naira visited a branch after payments stopped, only to discover that the office had been abandoned,” he said.

How The Platform Operated

Accounts from participants and promotional materials indicate that PXES used a membership structure with different investment levels.

Participants paid specified amounts to join and received access to an online dashboard where they were expected to complete daily tasks described as orders.

Funmi Deinde, a former participant, said she withdrew her money before the collapse. She identified three membership levels as Star 1, Star 2 and Star 3.

“If you’re on Level Star 1, so to say, it is about N21,600. Then Star 2 is N54,800. Star 3 is N207,000.

“When you join with this money, you have an account, a dashboard that you’ll be taking orders from every day,” she said.

Deinde said the dashboard displayed household products which participants were expected to interact with.

She compared the process to online shopping platforms such as Temu and Jumia, although participants did not receive the displayed products.

“When you click ‘Order’, they will highlight some of the things that you should be clicking. Household properties will be highlighted there.

“The money that you used to register has secured you a place as a member. So, you now have access to take orders every day,” Deinde said.

She said members were initially allowed to withdraw their earnings daily before the withdrawal system was changed to weekly.

“Initially, every day, you can withdraw whatever you want to withdraw. The least withdrawal was N1,500, N5,000, N20,000, N100,000 and so on,” she added.

According to her, withdrawal dates were later assigned according to membership levels.

Another participant, Emmanuel Ajayi, said the N64,000 package generated approximately N2,160 from daily tasks, while the N21,600 package produced about N720.

Promotional materials reviewed by Saturday PUNCH listed packages starting from N21,600, with higher packages including N64,800 and N207,000.

The materials claimed that an investment of N21,600 could produce as much as N259,200 over 360 days, while N64,800 could yield up to N777,600 during the same period.

The figures represented returns several times the initial amounts.

Participants also said members could recruit new participants and develop networks within the platform.

A security guard, whose name was withheld, said he initially resisted joining after his sister introduced PXES to him.

He eventually invested N64,000 after repeated persuasion. He said he withdrew about N20,000 on two occasions before losing the remaining funds after payments stopped.

According to him, his sister had developed a larger network and lost more than N1m.

Investment Platform Or Digital Marketing Company?

Questions have also emerged over how PXES described its operations.

At an event in Kabba, representatives of the organisation reportedly rejected the description of PXES as an investment platform. Instead, they presented it as a digital marketing and advertising company.

Olubowale Ayodele, a company representative, told participants that PXES provided digital marketing opportunities for unemployed people and graduates.

“It’s a job that once you are doing it, we promote others; we promote brands from clients that have been giving to our company,” he said.

Ayodele encouraged graduates and unemployed people with smartphones to participate.

“If you know you are a graduate, if you know that you are unemployed, or if you know that you just have your smartphone, use it to do this digital marketing work because it works,” he stated.

He also claimed that one member of his team was earning N700,000 every week.

“By God’s grace, I have got somebody even out of my team that is receiving 700,000 weekly as salary,” Ayodele said.

Another official, Eniola Oluwatobi, who was identified as the company’s training director, described PXES as an advertising company.

“This is an advertising company. They partner with eBay and Amazon; those people give them, and PXES give us to advertise for them,” he said.

He explained that products were made available to participants through the PXES application.

“So, the PXES distributes those products to us to advertise for them through their app. So, by doing that, people are seeing the products,” Oluwatobi added.

The Obadofin of Oweland, Olusegun Are, who attended the Kabba event, also described PXES as an income opportunity.

“PXES is a very laudable programme that will help all of us in Nigeria to have another stream of income,” he said.

The traditional ruler also claimed that the organisation had distributed food items to more than 300 elderly people in Kabba.

Financial Experts Question Authorisation

The collapse has raised questions about whether PXES was authorised to collect investment funds from members of the public.

Financial analyst George Samuel advised Nigerians to establish the regulatory status of any organisation before committing money to an investment scheme.

He stressed that registration with the Corporate Affairs Commission does not automatically give a company permission to accept deposits or solicit investment funds.

“While a Corporate Affairs Commission number may be necessary, it does not serve as a licence to accept deposits or investment funds,” Samuel said.

“Avoid depositing or investing with any unlicensed firms. They are required to display their licence in their office, so ask or look for that SEC licence and do basic due diligence,” he added.

Samuel said organisations that accept deposits or offer investment services are subject to regulatory requirements. He urged prospective investors to verify the appropriate licence before committing their funds.

A banker, Kemi Junaid, also identified promises of exceptionally high returns and guaranteed profits as warning signs.

“Financial desperation and poor financial literacy often made people vulnerable to schemes promising quick and substantial returns.

“Prospective investors should question how an organisation intends to generate the returns it promises rather than relying on testimonials from other participants,” she said.

EFCC Urges Victims To Report Investment Scams

The Economic and Financial Crimes Commission (EFCC) said it would examine reported cases of financial crimes and investment scams brought before it.

The commission’s spokesperson, Dele Oyewale, told Saturday PUNCH that complaints must be formally submitted before the EFCC can act.

“Any issue of financial crime, Ponzi scheme, investment scam that is duly reported to the EFCC, the commission will look into it. But it must be duly reported,” Oyewale said.

He recalled that the commission had issued several warnings about Ponzi schemes and other investment scams.

“As a form of reminder, the commission has issued several advisories against investment scams and Ponzi schemes. And we will continue to advise members of the public on doing due diligence before going into investment,” Oyewale said.

He said the commission would continue its preventive and enforcement efforts against financial crimes.

“But as an anti-corruption agency, we are unrelenting in our operational and preventive modalities to ensure that members of the public are shielded from all of these avoidable losses,” Oyewale said.

Oyewale did not confirm that the EFCC had opened a specific investigation into PXES.

PXES Collapse Follows Other Investment Scams

The PXES controversy is the latest in a series of investment schemes that have left Nigerians with significant financial losses.

In April 2025, the collapse of Crypto Bridge Exchange, popularly known as CBEX, caused widespread panic among investors. About 600,000 Nigerians were reportedly involved, with losses estimated at approximately N1.3tn.

CBEX had promised investors 100 per cent returns within 30 days through alleged artificial intelligence-powered trading.

The Securities and Exchange Commission later said CBEX and its affiliates had not been registered to operate as a digital asset exchange or solicit investments from Nigerians.

The commission said its preliminary investigation found that the platform created a false impression of legitimacy and offered “implausibly high guaranteed returns” over a short period.

The EFCC subsequently investigated the scheme, with the commission announcing arrests and recovery efforts.

Another platform, EMAAR, reportedly collapsed later in 2025 after attracting more than 4,000 investors through claims of returns from real estate investments. Investigations into the platform indicated that much of its recruitment and communication took place online.

EMAAR reportedly stopped allowing withdrawals on October 27, 2025, with suspected losses later estimated at nearly N3bn.

In May 2026, another platform, XM Future Music Group, reportedly collapsed after investors could no longer access their funds.

Victims reportedly stormed its office in Badagry, Lagos State, and removed office equipment including generators, chairs, fans and televisions.

The platform had reportedly offered returns to participants for listening to music and completing online tasks, with entry packages ranging from N21,600 to several million naira.

The recurring pattern has raised renewed concerns about Nigerians placing money in schemes that promise unusually high returns without first establishing how the businesses generate the promised income.

PXES Online Presence Becomes Inaccessible

Attempts to access the platform’s known website, https://www.pxesng.com/, were unsuccessful.

Some investors also said the platform’s WhatsApp channel had been blocked.

Its Facebook page, PXES NG, had not been updated since June 21, according to checks conducted by Saturday PUNCH.

The page contained posts about training sessions, meetings and activities for participants. Some posts also highlighted team-building sessions and claimed expansion across Nigeria and other African countries.

PXES also claimed on the page to have impacted more than one million members through financial stability and welfare support.

With investors now unable to access their funds and the platform’s offices reportedly shut in some locations, affected participants are left seeking answers over the fate of their investments.

By Uzair Adam

On Monday, October 14, 2024, a team of officers from the Enugu Zonal Directorate of the Economic and Financial Crimes Commission (EFCC) visited Urban Radio 94.5FM, Enugu, to invite Favour Ekoh, the host of the station’s program Prime Time, for questioning.

Ekoh is under investigation for her alleged involvement in a N700 million Ponzi scheme that affected about 50 victims.

The victims claimed Ekoh enticed them to invest in “Life Trading,” a scheme run by Leverage Index Limited, where they were promised 10 percent returns on their capital after a set period.

However, after they invested, the company, located at No. 1 Colliery Street, Okpara Avenue, Enugu, shut down, leaving them without their capital or any promised returns.

The victims said Ekoh was their primary point of contact for the scheme.

Upon arriving at the radio station with an arrest warrant, EFCC officers identified themselves to the station’s Managing Director, Bamikole Owoyomi.

However, in an unexpected move, a staff member called the station’s Chairman, who ordered the gates to be locked, trapping the EFCC officers inside the building.

The officers then called for backup, which led to the arrest of Owoyomi, Ekoh, and two security guards for obstructing the EFCC’s duties.

Ekoh, who was trailed to the station as part of a sting operation to prevent her from evading arrest, was allowed to make a statement at the EFCC’s Enugu office and has since been released.

Owoyomi and the guards, who were initially detained for preventing the officers from carrying out their duties, also made statements and were later released.

In a statement, Dele Oyewale, Head of Media & Publicity for the EFCC, emphasized that the commission holds the media in high regard but criticized the actions of the station’s staff as unlawful and obstructive.

He called on the International Press Institute (IPI) and the Nigerian Union of Journalists (NUJ) to examine the station’s conduct and Ekoh’s professional ethics, given her involvement in the fraudulent scheme.

The EFCC clarified that no equipment at the station was damaged and that there was no disruption to the station’s lawful operations during the arrest.

By Ibrahim Suleiman Ibrahim

The 7th of July marked exactly one year since I completed my NYSC, and so far, it has been an educative and worthwhile experience – Alhamdulillaah!

Let me tell you a story about my first experience in the labour market. The story goes thus;

A few days after the formal completion of my NYSC, I thought I should start job-hunting immediately. I said to myself then, “It’s better to strike while the iron is still hot”, what the Hausa people call “Da zafi zafi ake dukan ƙarfe“. I thought it was a prompt decision I made, forgetting that some of my colleagues with whom I completed NYSC had already secured lucrative jobs long before we completed NYSC. 

I didn’t let that discourage me anyway. “They are children of the elites, after all”—I said to myself. 

Another thing that motivated me to an immediate and unrelenting job-hunting was the fact that the Certificate of National Service, which used to be a barrier to so many opportunities I missed during my service year, had become handy at that time, and would no longer affect subsequent opportunities that might come.

So, to commence the job-hunting. I started following popular job sites and physical employers for job opportunities and ensured I did not let any job advert or link pass me by without applying. All these, I did with much confidence and hope to get a good job in no distant time.

One fateful evening, not up to a fortnight after the commencement of my job-hunting journey, while I was reclining on the sofa, I got a text message that reads thus;

“Congrats u have been shortlisted for our company Orientation on Monday 18/07/22 at 2nd floor, XX building Beside XXX Bank by XXXXX way Opposite XXXXX Road Kaduna, by 8:30 am.”(some information about the venue deserves confidentiality, hence the XXXX).

It was a text message from a random 11-digit phone number informing me that I had been shortlisted for a job and inviting me to an orientation exercise to mark the commencement of the job.

I was hellbent on getting a ‘better job’ that I didn’t even pay attention to the sheer informality and unprofessionalism in the text message I got. 

It is noteworthy that I already had a job I was managing then, but I was eager to get better opportunities since I was done with NYSC and expectations were very high.

So, I dressed my best on the scheduled morning for the orientation exercise and prepared for a possible interview that might come up during the orientation.

It will baffle you to know that I wasn’t even sure which of the jobs I got, but I was confident it would be better than the job I was managing then.

On reaching the venue, I saw a crowd of young people queuing in front of a desk officer for documentation and trooping into a large hall afterwards.

Long story short, I got into the hall after the tedious documentation process and later discovered that I was cheaply lured into attending a ‘Neolife’ lecture—Neolife is one of those tricky investment schemes claimed to be a foreign investment company, filled with a bunch of jobless people, where your income solely depends on the number of people you successfully convince into investing in the scheme. 

They indoctrinate the belief that you could become a multi-millionaire in a few months of investment if you successfully convince people to join the scheme. They tell you about how useless it is to seek salary jobs and how important it is to invest your whole savings into Neolife. They’ll tell you stories of one of their colleagues living in Europe, making millions of dollars due to investing in Neolife.

I felt disappointed and heartbroken to discover that I finally got lured into attending their lecture because of my naivety as a fresh graduate. I have spent my whole life avoiding the agents and promoters of such schemes.

That day I bade an official “Welcome” to the labour Market.

I have more stories about my labour market experience, but I’m indisposed to write about them now; perhaps, I’ll do that leisurely as time passes.

Ibrahim Suleiman Ibrahim wrote via suleimibrahim00@gmail.com.

By Bilyamin Abdulmumin

In the first part of this article, Ponzi alias pyramid schemes were discussed in detail, including their cunning modus operandi. If you come to these schemes with suspicion and scepticism, the chance is that you would notice some funny or dubious traits associated with them. The second part wishes to discuss these traits.

An obsession to prove originality

When someone is not truthful, he knows. So, he will assume the suspect mode consciously or unconsciously. He will always show the urge to convince others that he is a saint. This phenomenon is a funny trademark of Ponzi schemes.

These vague platforms float all kinds of certificates at any given opportunity to prove they are real. The more one becomes obsessed, the easier it becomes to detect his flaws. For instance, how could a firm claiming to be a global investment but floating a CAC with business name registration (which even a market woman can get) as evidence of originality? Many Ponzi agents woo potential subscribers with certificates as evidence of legitimacy, “mai kaza a aljihu ba ya jimirin” as” loosely means “he who has a skeleton in the cupboard live in fear.”

Unprofessional communication

 In this 21st century, communication has become a fundamental part and parcel of any firm, especially the one claiming to be a global player. Any renowned firms there will seek to prove to be professionals in their platforms and customer service delivery. For instance, if you visit any Nigerian telecommunications or bank platforms or engage their customer service agency, you will find them very professional. Likewise, their command of the English language is standard. But that is not the case with many Ponzi schemes. One will find their platform full of average written English, their responses sometimes as good as any street English user.  I have observed one costly mistake from these platforms; they kept replying “transaction successced (sic)” instead of “transaction succeeded” This is an embarrassing mistake no firm would afford. 

Definite and stable gains

Market forces dictate that there is always a level of uncertainty for the return of any investment, but not in the world of seemingly Ponzi schemes. Most legitimate investments are based on “gain and loss”. Sometimes the investment return will be much, small, or even deficit depending on the market forces. Still, as mysterious as it is, this basis of ‘gain and loss’ does not exist in the realm of Ponzi schemes. The song is always the same in these fraudulent platforms: gain and gain, invest x naira and recoup 2x naira.

 Some market forces not long ago that caught the global economy unaware were Covid-19 and Ukraine inversion by Russia. The only market immune from the shocks was the Ponzi scheme. So, dear investors looking for easy money, wake up and smell the coffee.

Camouflage 

Of course, anyone who wants to play a shady game will woo others into believing him by camouflaging a well-known establishment. The Ponzi schemers are masters of camouflage. They float a famous brand as their own. But a simple way to discern this trait is by noting the difference in name between the platform and its website address; let me emphasize this point by riding on the back of the white paper issued on Sunpower.

Sunpower is an acclaimed online investment but was found untrustworthy by “nogofallmaga”, an NGO dealing with scam practices.  The pseudo-Ponzi scheme is known everywhere as Sunpower, but their website name is www.sunsolar.one. This appears to be camouflage because there is a genuine global brand with the name Sunpower and has www.sunpower.com as its website address. So, dear Sunpower, why is the vagueness (brand name different from the website address)?

The dubious and funny traits of fraudulent platforms are many. Control your desire for windfalls, and it becomes difficult to sell you a dummy.

Bilyamin Abdulmumin wrote via bilal4riid13@gmail.com.

By Bilyamin Abdulmumin

Needless to say, everyone wants money. Most of us have an insatiable love for them. There is this Hausa rhetoric:  if anyone says, “you have too much love for money, then the person saying that is playing with your intelligence”. In other words, the accuser is being unserious because what he said is a fact not only about you alone but everyone.

However, that is not the nitty-gritty of the matter because the like for money is one thing, and getting them is another. Getting the money is not as easy as pushing a standing pestle. Neither is it as easy as slapping a chick (in Dan Anace’s words)

To get the Phoenician’s invention, one has to invest a lot. It is a struggle for “survival of the fittest”. Those who bring or have the best ideas or strategy get them, thus putting us in constant skirmish and outweighing one another (capitalism in short).

Through their programs, some people have allegedly found a platform that can bring us this money almost effortlessly. In other words, the Ponzi scheme, alias pyramid, promises to free us from the bandage of suffering before getting the money.

To get to the utopia, according to these organizations, one will only invest a certain amount of money, and instantly a fixed profit is ensured (which one can claim after some time). The return of these investments is usually from 10 to 1000 per cent.

Initially, these Ponzi organizations’ operations were physical, with their offices and agents well known. One of such schemes that once cut across nook and cranny in Zamfara State was “oil and gas investment.”

The gale of the scheme in the state swept aside everyone on its path. It left neither business people, politicians, government workers, or even town heads. The “oil and gas” claimed an investment with a 100 per cent return in two weeks. For instance, an investment of 10,000 would qualify one to cash out 20,000 in two weeks. This is the type of eldorado business everyone can envisage, making it difficult to resist.

With the global transition from a physical to an online platform, the Ponzi schemes have followed suit. They would unleash their various applications where subscribers follow laid-down rules. Although different from the physical schemes, the concept remains the same: invest a certain amount of money and recoup mouth-watering profit (at 100 % assurance).

MMM was one online Ponzi that traversed the length and breadth of Nigeria, thanks to the subscribers’ testimonies like that of the oil and gas scheme. MMM promised and initially delivered 30 per cent profit to subscribers at every kobo invested within two weeks. This online investment was even riskier because the subscribers were dealing with faceless agents. When the MMM finally crashed, the bang of the burst was heard everywhere across the globe.

How the MMM founder from the far East of the globe, Russia, was able to convince Nigerians (some of whom are learned) to use not only their savings but other people’s money (staff salary, school registration fees, or money entrusted to them) was a mystery

The basic modus operandi of any pyramid scheme is the same: one particular schemer (the Ponzi initiator) would convince one to two people. Next, these two people convince four, four convince eight, and it keeps cascading like a symbolic pyramid hence the name pyramid scheme. Note the new subscribers in the pyramid pay the older ones; those at the top, especially the schemer who is at the top, bag the most money out of the scheme to the detriment of those at the bottom. For the scheme to remain healthy in operation, the new subscribers must always be able to pay the older ones; otherwise, the scheme becomes stuck in the mud.

Some of the Ponzi schemes recently to have met the waterloo are ISME and OSTIME. And according to “nogofalmaga”, an NGO specialist in dealing with Ponzi schemes, some other currently active schemes are only a matter of when not if they flow suit. These are SunPower, Tesla-recharger, Bitmaincenter sabrinascala, stormgain, among others.

In order not to take too much space, I reserved for the next article the discussion of some funny traits of Ponzi schemes

The elixir for easy money doesn’t exist. The Ponzi scheme can only provide for a few while robbing many others. If it is too good to be true, don’t trust it.

Bilyamin Abdulmumin wrote via bilal4riid13@gmail.com.