In the wake of Nigeria’s latest investment scandal, CBEX, a so-called trading platform that trapped thousands of Nigerians with the promise of 100% monthly returns, only to disappoint them on a nationwide scale, one thing is clear: financial literacy is no longer optional.
As digital platforms continue to change how Africans earn, save, and invest, a lack of foundational knowledge will continue to loop us into alluring scams like CBEX. Luckily, this article can teach you what you need to know.
The Divide Between Technological Access and Understanding
The CBEX platform used flashy websites, mobile apps, and persuasive testimonials to create the idea that they were legitimate. Like many digital Ponzi schemes, it took advantage of the fact that there was a lot of technological access with little financial understanding. In Nigeria, where mobile penetration is high but the education to use those mobile devices is low, many citizens engage with fintech apps without truly grasping how investment works.
Having a smartphone doesn’t mean you understand compound interest. And downloading an app doesn’t mean you know how to read a balance sheet. CBEX thrived in this space of digital assumption, exploiting the fact that tech literacy and financial wisdom are sometimes worlds apart.
The Desperation Effect: The Need for Financial Stability
In a country where youth unemployment is over 40%, it’s tempting to attribute the CBEX frenzy to greed. But a closer look reveals a different truth: desperation. When formal job opportunities are scarce, and the cost of living climbs daily, “get-rich-quick” becomes “get-out-of-poverty-quick.” Many of CBEX’s users weren’t greedy, they were grasping at hope.
This is where financial literacy could have served as a shield. Basic principles, such as “high returns usually mean high risk” and “if it sounds too good to be true, it probably is”, can be life-saving. But these principles must be taught, discussed, and repeated across formal education systems and social media.
Hustle Culture and Scam Influencers
The CBEX issue was also fueled by influencers (some unaware, some complicit) who used platforms like TikTok, WhatsApp, and Instagram to promote it. As digital hustle culture glamorizes the idea of fast money, many creators are becoming mouthpieces for schemes that look legitimate on the surface, only to hurt their loyal followers and themselves in the process.
Financial literacy in this age must include media literacy: learning how to verify claims, cross-check information, and identify the warning signs of a scam. Not just agree with what the most popular or pretty looking influencer says
Building a Financial Future: What Needs to Change
The CBEX collapse isn’t just a cautionary tale. It’s a turning point. Here’s what must shift:
- Curriculum reform: Financial education should start in secondary school. Budgeting, investment basics, digital banking, and fraud awareness must be part of the curriculum.
- Community-based initiatives: Religious institutions, market unions, and NYSC programs can serve as platforms for community-led financial workshops.
- Social media accountability: Influencers must be held to ethical standards, especially when promoting financial services. Platforms should implement stricter ad verification policies.
- Government regulation: Stronger oversight of digital financial platforms is essential. Regulatory bodies must be proactive—not just reactive—when red flags appear.
Conclusion: Financial Wisdom and the Money-Minded Nigerian
CBEX is not the first digital scam to rock Nigeria, and it won’t be the last. But it can be a turning point if we collectively commit to building a financially literate population. In this digital age, financial education is no longer a luxury. It’s the survival skill.
What do you think? Let us know down below. For more on the CBEX financial crisis, click here.
