Nigerians may be facing another painful experience with an online investment platform as reports emerge of people losing millions of naira through PXES, rekindling memories of the devastating experiences associated with failed schemes such as CBEX and MMM.
The development according to The Punch Newspaper, has renewed concerns about the growing popularity of online investment platforms that promise attractive or seemingly quick returns to Nigerians.
The situation is particularly worrying because many Nigerians who suffered losses in previous schemes, including MMM and CBEX, have continued to seek alternative ways of making money online.
The Securities and Exchange Commission has previously warned Nigerians against unregistered online investment schemes promoted through social media platforms, noting that several of such platforms display characteristics associated with Ponzi schemes. The regulator urged members of the public to verify whether an investment platform is registered before committing their money.
The latest concerns surrounding PXES therefore raise fresh questions about how Nigerians can distinguish legitimate investment opportunities from schemes that could expose them to devastating financial losses.
The experience of CBEX remains a major warning. Many Nigerians who invested their savings in the platform were left unable to access their funds after the scheme collapsed, reinforcing concerns about the dangers of putting money into investment platforms without adequate regulatory verification.
The earlier MMM experience similarly demonstrated how thousands of Nigerians could be attracted by promises of high returns before a scheme eventually became unsustainable.
For ordinary Nigerians, the lesson is simple: attractive returns should not be enough to convince anyone to invest. Before transferring money to an online investment platform, prospective investors should establish whether the operator is legally registered, understand how the investment generates returns and be wary of schemes that depend heavily on recruiting new participants.
The SEC has specifically advised Nigerians to verify the registration status of investment companies and platforms through its official databases before committing their funds.
The reported PXES losses, if confirmed by affected investors and authorities, would therefore represent another reminder that the painful lessons of MMM and CBEX have not disappeared — and that Nigerians must exercise extreme caution before entrusting their savings to online investment platforms.