ICYMI: CBEX: Is Nigeria's Financial System Vulnerable?
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CBEX: Is Nigeria's Financial System Vulnerable?
On April 16, 2025, the Crypto Bridge Exchange (CBEX), a digital asset trading platform, suspended its operations without prior notice. The platform is alleged to hold approximately $847 million in investor funds, resulting in significant financial losses.
This incident is not isolated. Over the past five years, Nigeria has experienced a surge in similar investments, raising urgent concerns about the country’s growing vulnerability to financial crime.
According to the Global Organized Crime Index (2023), Nigeria scored 7 out of 10 for financial crime prevalence, indicating a significant exposure to illicit financial activities. Similarly, the 2022 National Inherent Risk Assessment (NIRA) classified Nigeria as having a "high threat risk" level for money laundering, a strong indicator of systemic financial crime threats.
Both assessments reflect the deepening vulnerabilities within Nigeria’s financial system, including increasing risks of money laundering, fraud, embezzlement, and corruption.
The widespread nature of financial crimes in Nigeria highlights systemic weaknesses, ineffective enforcement mechanisms, and the exploitation of regulatory loopholes. Among the sectors most exposed are banking and real estate, identified by NIRA as critical channels for money laundering, illicit fund transfers, and asset concealment.
Further illustrating the scale of the challenge, data from the Economic and Financial Crimes Commission (EFCC) shows that convictions for financial crimes increased by 148% over the past five years. However, there was a notable decline in convictions in 2023.
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