Nigerians are counting losses after the PXES Ponzi scheme stopped paying investors in September. The collapse has triggered anger in Adamawa and Kogi, with some investors storming the platform’s offices.
ABUJA, NIGERIA — Nigerians who invested thousands and millions of naira in PXES, an online platform that promised unusually high returns, are counting their losses after payments stopped in early September and investors could no longer access their funds. Reports of the collapse have triggered protests and the looting of PXES offices in parts of Adamawa and Kogi states.
According to investigations reported by Saturday PUNCH, investors joined the platform through different packages and received payments before the system stopped working. Some participants said they invested between about N21,600 and N207,000, while others committed larger sums after seeing friends and acquaintances receive returns from the platform.
Review by Newstridez found that the reported PXES collapse follows a familiar pattern seen in several Nigerian investment scams: aggressive recruitment, promises of unusually high returns, early payments that build confidence, referral networks and sudden difficulty accessing funds. The Securities and Exchange Commission warns that Ponzi schemes typically depend on new investors to sustain payments to earlier participants.
The situation became particularly tense in Adamawa and Kogi after investors who could not withdraw their money visited PXES offices. Videos reviewed in the original report showed people removing chairs, tables and other items from the company’s premises in Yola, while similar scenes reportedly occurred at the platform’s office in Kabba.
Several investors described how they were drawn into the scheme after seeing others apparently make money. One investor, Bunmi Awodipe, said she committed ₦200,000 after three friends showed her evidence of receiving payments. She said the platform paid her ₦7,000 weekly for three weeks before the payments stopped and she later found the office locked.
Another participant, Deji Mulero, said a customer introduced him to PXES on September 4, after which he registered with ₦65,000. According to him, the platform stopped working the same Friday, leaving him unable to recover the money. Another investor identified as Wale said he registered with ₦207,000 and had accumulated nearly ₦600,000 on his account before the platform stopped operating.
The losses have also affected people who invested money meant for basic household needs. A 68-year-old participant, Jumoke Talabi, said she invested ₦64,800 after receiving an earlier payment from the platform. She expected another ₦18,000 payment to help with her granddaughter’s school expenses, but said she received nothing after the platform stopped paying.
Talabi’s account highlights the pressure that can push Nigerians towards high-risk schemes. She told the newspaper that financial hardship influenced her decision to invest, after she saw other participants receiving money. Her experience also shows how the collapse of such platforms can affect school fees, food expenses and household finances, rather than simply reducing money set aside for speculative investments.
PXES participants said the platform used a tiered membership structure. According to one participant, the packages included Star 1 at about ₦21,600, Star 2 at ₦54,800 and Star 3 at ₦207,000. Members received access to an online dashboard where they completed what the platform described as daily orders or digital tasks.
Promotional materials reviewed in the investigation reportedly claimed that a ₦21,600 package could generate up to ₦259,200 over 360 days, while ₦64,800 could generate as much as ₦777,600 over the same period. Such projected returns should have raised questions for prospective investors because the amounts represented several times the original capital within a relatively short period.
PXES representatives, however, disputed the description of the platform as an investment scheme. At an event in Kabba, company representatives described the organisation as a digital marketing and advertising business. One representative, Olubowale Ayodele, said the company created opportunities for unemployed people and graduates to earn money through digital marketing activities.
Another PXES official, identified as Eniola Oluwatobi, described the company as an advertising firm and claimed it worked with platforms including eBay and Amazon. He said participants used the PXES application to advertise products displayed through the system. The claims could not independently establish the source of the returns paid to members before the platform became inaccessible.
The collapse has now raised questions about whether PXES had the regulatory approval required to solicit investment funds from members of the public. Financial analyst George Samuel said registration with the Corporate Affairs Commission does not by itself authorise a company to collect deposits or solicit investment funds. He urged Nigerians to check for the appropriate Securities and Exchange Commission licence before committing money.
The SEC’s investor guidance similarly warns Nigerians about schemes that promise unusually high returns with little or no risk. The regulator says investors should check whether a platform appears on its register of authorised operators and should be cautious where a scheme depends heavily on bringing in new participants to sustain payments.
Meanwhile, the Economic and Financial Crimes Commission said it would examine reported cases of Ponzi schemes and investment fraud when victims formally bring complaints before the agency. EFCC spokesperson Dele Oyewale told Saturday PUNCH that the commission had repeatedly warned Nigerians about investment scams and urged members of the public to conduct proper checks before investing.
The PXES collapse also comes after several major investment platforms left Nigerians counting losses. In April 2025, CBEX collapsed after reportedly attracting hundreds of thousands of investors, with losses estimated at about ₦1.3 trillion. The SEC later said CBEX and its affiliates had not been registered to operate as a digital asset exchange or solicit investments from Nigerians.
Other schemes, including EMAAR and XM Future Music Group, have also faced reported collapses, with investors unable to withdraw funds after periods of aggressive recruitment and promises of high returns. The repeated cases show how operators can change their business labels while maintaining similar recruitment and payment structures that leave late investors exposed when the flow of new money slows.
Newstridez also notes that access to the PXES website was reportedly unsuccessful during the investigation, while investors said the platform’s WhatsApp channel had become unavailable. A review of the platform’s Facebook page reportedly showed that its last post came in June, despite earlier claims of expansion and a large membership base.
As at the time of filing this report, the EFCC had not confirmed that it had opened a specific investigation into PXES. Investors continue to face uncertainty over the recovery of their money, while the reported shutdown of offices and online channels has increased concerns about the whereabouts of the platform’s operators.
The next step will depend on formal complaints by victims, regulatory checks and any investigation opened by law-enforcement authorities. For Nigerians considering online investment opportunities, the PXES case is another warning to verify regulatory approval, question unusually high returns and avoid committing essential household money to platforms whose business model cannot be clearly established.
The PXES Ponzi scheme has left investors across Nigeria counting losses after payments stopped and access to the platform became difficult. The EFCC says reported investment scams can be investigated when formally reported, while the SEC continues to advise Nigerians to verify operators before investing.
