Investors in Nigeria who put millions of naira into an online platform called PXES are now facing losses after the scheme suddenly stopped paying out returns and became inaccessible.
The platform ceased payments in early September, leaving investors—whose investments ranged from tens of thousands to millions of Naira—in limbo, with some unable to contact the operators.
This collapse has incited outrage, with some investors storming PXES offices nationwide, especially in Adamawa and Kogi states, in a frantic attempt to recover their funds.
Sources suggest that PXES attracted investors by offering abnormally high daily returns.
Reports indicate the platform promised returns between 25% and 50%, with some packages purportedly offering up to 120%.
Outrage in Adamawa and Kogi
In Adamawa and Kogi states, angry investors raided PXES offices after being unable to withdraw their money.
Videos circulating online show people removing furniture from the Yola office, and similar scenes were recorded at the Kabba branch.
One video features a man, who claimed he invested about N209,000, crying and lamenting his inability to recover his investment.
The Kabba manager had earlier assured investors via message that the management would compensate them for their patience, but three days later, the company reportedly shut its office, leaving investors in the dark about the whereabouts of the operators or the status of their funds.
Victims recount their experiences
Bunmi Awodipe, a victim, explained she decided to invest based on friends’ experiences who appeared to be making money from PXES.
She said three friends showed her evidence of returns, convincing her to invest ₦200,000, which she received weekly as ₦7,000 for three weeks.
When she visited the office last week, she found it locked and emptied.
Another investor, Deji Mulero, joined after a customer introduced him on September 4, investing ₦65,000, but the platform crashed the same day, leading to a loss.
A participant, Wale, said he invested ₦207,000 and had nearly ₦600,000 in his account before the scheme collapsed.
Responding to a message inquiry, Wale explained he had been with it for months, earning close to ₦600,000, introduced by a friend in Abuja.
Jumoke Talabi, 68, invested ₦64,800 to fund her granddaughter’s education and household needs, hoping to receive ₦18,000 before school resumed.
She initially received ₦70,000 but has yet to receive subsequent payments. She described her disappointment and poverty-driven decision, hoping to buy rice and food.
Shola Adesina, whose wife lost money, noted that many investors were lured by claims of small investments yielding high daily returns, with stories of people buying cars and building houses.
He said the frustration grew when investors visited abandoned offices after payments stopped.
How PXES operated
Interviews and promotional materials reveal PXES operated via a multi-tier membership system with online dashboards.
One participant, Funmi Deinde, withdrew her funds before the collapse and described the structure, which included Level Star 1 (₦21,600), Star 2 (₦54,800), and Star 3 (₦207,000).
Members accessed dashboards where they completed daily tasks called orders, similar to online shopping, but without physical goods.
Participants could withdraw earnings daily initially, then weekly, with amounts starting from ₦1,500.
Some packages claimed to generate hundreds of thousands of naira over 360 days, promising high returns.
Members could also recruit others to expand the network.
A security guard, who invested ₦64,000, withdrew some money but lost the rest when payouts ceased, with his sister losing over ₦1 million.
Is it investment or digital marketing?
PXES representatives at a recent event claimed it was not an investment platform but a digital marketing and advertising company aimed at promoting brands and providing employment.
They encouraged unemployed youth and graduates to use smartphones for digital marketing work, claiming some team members earned up to ₦700,000 weekly.
Other officials described PXES as an advertising firm, partnering with eBay and Amazon, distributing products for advertising purposes.
The Obadofin of Oweland called PXES a good income opportunity and noted it had provided food to over 300 elderly people in Kabba.
Regulatory concerns
Questions have been raised about whether PXES was authorized to solicit investments publicly.
A financial analyst, George Samuel, advised verifying licenses before investing, as registration with the Corporate Affairs Commission does not imply licensing.
Kemi Junaid, a banker, warned against schemes promising high guarantees, emphasizing the importance of understanding how returns are generated.
EFCC responds
The EFCC stated it would investigate reported financial crimes and scams but has not confirmed any specific investigation into PXES.
Spokesperson Dele Oyewale urged the public to report details of any suspicious schemes.
The recurring pattern of crypto and Ponzi scheme collapses in Nigeria underscores the importance of due diligence.
Past cases include the Crypto Bridge Exchange (CBEX), which lost Nigerians about ₦1.3tn, and other platforms like EMAAR and XM Future Music Group, which also promised high returns but collapsed.
The pattern involves aggressive recruitment, early payouts, high promised returns, referral incentives, and withdrawal issues—and it’s becoming all too familiar.
Accessing the platform’s website was unsuccessful, and some investors reported that its WhatsApp channel was blocked. The Facebook page was last active on June 21, mainly posting training and team-building activities.
PXES claimed to have impacted over a million members across Nigeria and Africa, but the cycle of scams continues, highlighting the need for vigilant investment practices.
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