Everything You Need To Know About CBEX

Sunday 20th April 2025 (Happy Easter!)

I hope you are having an amazing Sunday! Welcome back to the ONLY newsletter that gives readers a weekly recap of the major events in the Nigerian Business World.

According to reports, investors lost more than N1.3 trillion when the digital investment platform CBEX abruptly crashed on Tuesday. Numerous users have responded to the incident in various ways, voicing their displeasure, disapproval, and worries. Many people stormed the CBEX office in Oyo State, destroying the company's property.

Claiming to be a worldwide platform, CBEX claimed to have a connection to a Chinese government-owned company. In 2024, Beijing Equity Exchange denied any connection to the Ponzi scheme. The actual Beijing Equity Exchange warned people about the infringement of its name, which had nothing to do with CBEX.

CBEX'S OBJECTIVES

With a rented office in Ibadan, Oyo State, CBEX first appeared in Nigeria in July 2024. It was to create an illusion that it was a legitimate business with a physical headquarters. Although his true identity is still unknown, a man known as Yahaya Ibrahim claimed to be the CEO of CBEX.

Investors claim that CBEX's objective was to use a cutting-edge artificial intelligence system to assist users in making sizable profits through cryptocurrency trading.

WHY NIGERIA?

Nigeria was the primary market for CBEX, which drew in Nigerian investors looking for quick-money opportunities. There was no verification of the claims of Chinese connections and offices in Canada. Random certificates, like a US FinCEN registration, were shown online by CBEX. There were no actual branches outside of Nigeria at the time.

Business Insider Africa reports about 250,000 to 300,000 Nigerians invested in CBEX. Its referral system attracted a considerable number of investors. Users had to sign in daily to view their earnings and recruit new members.

CBEX'S OPERATIONS

According to users, CBEX allegedly promised a fixed monthly return on investment of approximately 100% within 30 days. New deposits from subsequent investors provided the returns. The AI bot, which showed users fictitious charts and balances with no actual trading behind the scenes, traded twice a day and generated a daily profit of roughly 3%, according to CBEX. Users who recruited more members would receive commissions because referrals earned bonuses.

EFCC INTERVENTION

CBEX was included in the list of dozens of dubious schemes by the Economic and Financial Crimes Commission. The EFCC declared after its demise that it would work with Interpol to find the masterminds, including those who might be hiding abroad.

Bank Recapitalisation Crucial for $1 Trillion Economy Target – CBN

As a strategic response to changing economic realities and global financial shifts, the Central Bank of Nigeria has reaffirmed that the ongoing recapitalisation of the banking sector is crucial to Nigeria's goal of becoming a $1 trillion economy.

Olubukola Akinwunmi, the director of the CBN's Banking Supervision Department, stated that the capital upgrade is not only appropriate but also required to guarantee that banks continue to be strong enough to support national development goals during a seminar for finance correspondents and business editors in Abuja on Monday.

Mr Akinwunmi made the following comments;

“As Nigeria moves towards becoming a $1 trillion economy, the capacity of banks to support this growth trajectory becomes essential.”

“The banking system is the fulcrum, through its intermediation function.”

According to him, Nigeria's ambitious economic goals necessitate a banking industry strong enough to support manufacturing, finance transformative infrastructure, aid in economic diversification, and support agriculture.

Dangote Refinery Reduces Petrol Prices Again

On Wednesday, the Dangote Refinery declared that it had lowered the price of petrol sold to retailers from N865 to N835 per litre.

Anthony Chiejina, the company's Group Chief Branding and Communications Officer, announced in a statement that the price change will take effect on April 16.

“Dangote Petroleum Refinery is pleased to announce a reduction in the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, from N865 to N835, effective from Wednesday, 16th April 2025. This marks the second price reduction within a week.”

He clarified that the company's dedication to offering premium petrol at reasonable prices is reaffirmed by these price cuts, which will benefit customers nationwide.

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Thank you for reading! Stay tuned next week to be updated with the latest major events from the Nigerian commercial sector.