Nigerians Lose Millions As PXES Ponzi Scheme Allegedly Collapses

Nigerians who invested tens of thousands and millions of naira in the online investment platform PXES are reportedly counting their losses after payments stopped and the platform became inaccessible.

According to Ireporter Online, withdrawals to participants reportedly stopped in early September, leaving investors unable to access funds they had committed to the platform.

The development has triggered anger among some participants, with aggrieved investors reportedly visiting PXES offices in Yola, Adamawa State, and Kabba, Kogi State, after attempts to withdraw their money failed.

Videos reportedly circulating online showed some investors removing chairs, tables and other items from the company’s premises in Yola, while a similar situation was said to have occurred at its Kabba office.

The platform reportedly attracted investors with promises of substantial returns through different investment packages. Participants said the packages ranged from about ₦21,600 to ₦207,000, with advertised returns reportedly ranging from 25 to 50 per cent and, in some cases, as high as 120 per cent.

One investor, Bunmi Awodipe, said she joined the platform after friends showed her evidence of receiving payments.

Awodipe said she invested ₦200,000 and initially received ₦7,000 weekly for three weeks before the payments stopped.

“They told me they invested money in PXES and were receiving their payments. They showed me evidence, so I decided to invest ₦200,000 and was receiving ₦7,000 every week. They only paid me for three weeks,” she said.

She added that her visit to the company’s office after the payments stopped was unsuccessful.

“When I went to their office last week, I didn’t see anyone. The place was locked and there was nothing in the office. Everything was removed,” Awodipe said.

Another participant, Deji Mulero, said he was introduced to the platform by one of his customers.

Mulero claimed he registered with ₦65,000 on September 4, only for the platform to stop operating shortly afterwards.

“It’s one of my customers who introduced this thing to me on September 4. I registered with ₦65,000 and it crashed the same Friday. That was how I lost my money,” he said.

An investor identified as Wale also claimed to have invested ₦207,000 and accumulated nearly ₦600,000 on his account before the platform became inaccessible.

“I’ve been there for some months. Registered with 207k, now on first stage supervisor. Got close to 600k already on that account. My friend in Abuja introduced the scheme to me,” he said.

For 68-year-old Jumoke Talabi, the investment was reportedly intended to help cover her granddaughter’s school expenses and provide additional money for household needs.

Talabi said she invested ₦64,800 after observing other participants receive payments. She said she had previously received ₦70,000 from the platform before increasing her investment.

According to her, she expected another payment but was unable to withdraw the money when the scheduled withdrawal period arrived.

“I was meant to collect ₦18,000 before school resumes, and I thought that I would finish collecting all my profit. But so far, I have not collected any money,” she said.

Talabi said she initially celebrated when she was told withdrawals would be processed, only to discover that the money had not entered her account.

“When they said we should withdraw on Friday, I was dancing. I told my brother that the money did not enter my account, but I was told it would hit my account in the evening,” she said.

She added that some of her friends who also invested were distressed by the development.

“One of my friends doesn’t know what to do or where to go. She has been crying,” Talabi said.

Explaining why she invested despite the risks associated with such schemes, Talabi said financial hardship influenced her decision.

“It’s poverty that made me do it. If not poverty, I would not, because the money is meant for school fees. I thought that maybe, I would see some to buy rice and eat,” she said.

Other participants also described how the platform reportedly attracted new investors through claims of substantial financial gains.

Shola Adeshina, whose wife reportedly invested in PXES, said stories about participants making significant profits helped to draw more people into the scheme.

He said some investors were encouraged by claims that participants had used earnings from the platform to acquire vehicles and construct houses.

Adeshina added that concerns intensified after some investors who had reportedly committed millions of naira visited a PXES office following the suspension of payments and allegedly found the premises abandoned.

Participants also described a tiered membership structure under which investors paid different amounts and received access to an online dashboard.

Funmi Deinde, one of the participants, said the platform had different membership categories, including Star 1, Star 2 and Star 3.

She said some of the packages required investments of ₦21,600, ₦54,800 and ₦207,000.

According to Deinde, members were given access to dashboards where they were expected to complete daily “orders” or tasks involving products displayed on the platform.

“When you join with this money, you have an account, a dashboard that you’ll be taking orders from every day,” she said.

Deinde explained that participants interacted with household products displayed on their dashboards but did not necessarily receive the physical items.

“The money that you used to register has secured you a place as a member. So, you now have access to take orders every day,” she said.

She further claimed that members initially had the opportunity to withdraw their earnings daily, although the system was later changed to weekly withdrawals as the platform expanded.

“Initially, every day, you can withdraw whatever you want to withdraw. The least withdrawal was ₦1,500, ₦5,000, ₦20,000, ₦100,000 and so on,” she said.

According to her, withdrawal schedules were subsequently assigned based on members’ investment levels.

Another participant, Emmanuel Ajayi, claimed that the ₦64,000 package generated approximately ₦2,160 from daily tasks, while the ₦21,600 package reportedly generated about ₦720.

Promotional materials reviewed in connection with the platform reportedly advertised packages starting from ₦21,600, with higher tiers including ₦64,800 and ₦207,000.

The materials allegedly claimed that an investment of ₦21,600 could generate up to ₦259,200 over 360 days, while ₦64,800 could yield as much as ₦777,600 within the same period.

Participants also alleged that the platform encouraged members to recruit new investors and build networks as part of its operating model.

A security guard, who requested anonymity, said he initially hesitated after his sister introduced him to PXES but eventually invested about ₦64,000 following repeated persuasion.

He claimed to have withdrawn approximately ₦20,000 on two occasions before payments stopped, leaving his remaining funds inaccessible.

The man further claimed that his sister, who had reportedly built a larger network within the platform, lost more than ₦1 million following the suspension of payments.

The reported development has left affected investors demanding clarity over the whereabouts of their funds, while the status of the platform and its operators remains a major concern among participants.