PXES Collapse: Nigerians Lose Millions as Investment Platform Stops Payments

Nigerians who invested millions of naira in an online platform known as PXES are counting their losses after the platform abruptly stopped paying returns and became inaccessible.

The platform reportedly stopped processing payments in early September, leaving investors who had committed amounts ranging from tens of thousands of naira to millions unable to withdraw their funds or contact its operators.

The development has triggered anger among affected investors, with some reportedly storming and looting PXES offices in parts of the country, particularly in Adamawa and Kogi states, in an attempt to recover some of their investments.

Investigations indicated that PXES attracted participants with promises of unusually high returns. Reports from investors suggested that some packages offered returns ranging from 25 per cent to 50 per cent, while some were advertised with returns as high as 120 per cent.

However, the reported returns could not be independently verified.
In Adamawa and Kogi states, angry investors reportedly visited PXES offices after they were unable to access their funds.

Videos circulating online showed people removing chairs, tables and other items from the company’s office in Yola, Adamawa State.

Similar scenes were reportedly witnessed at the company’s office in Kabba, Kogi State.

One of the videos showed a man who reportedly invested about N209,000 lamenting his inability to recover his money.

The Kabba manager of PXES was said to have earlier sent a message to investors after payments stopped, assuring them that the management would compensate them and asking them to remain patient.

However, three days after the message was circulated, the office was reportedly shut, leaving investors without information about the whereabouts of the operators or the fate of their funds.

Investors Count Losses
One of the affected investors, Bunmi Awodipe, said she invested N200,000 in PXES after three friends showed her evidence that they had been receiving returns from the platform.

Awodipe said she initially received N7,000 weekly for three weeks before the payments stopped.

She said she later visited the company’s office but found it locked and deserted.
Another investor, Deji Mulero, said he registered with N65,000 on September 4 after being introduced to the platform by one of his customers.

According to him, the platform stopped operating the same week, resulting in the loss of his money.

Another investor, who identified himself simply as Wale, said he invested N207,000 and had accumulated almost N600,000 on his account before the platform stopped operating.

He said a friend in Abuja introduced him to the scheme.
For 68-year-old Jumoke Talabi, the investment was intended to help her pay her granddaughter’s school expenses and meet household needs.

Talabi said she invested N64,800 after seeing other participants receive payments.

She said she had previously received N70,000 from the platform, which encouraged her to increase her investment.

She said she was expecting another payment when the platform’s scheduled withdrawal period arrived but received nothing.

Talabi attributed her decision to invest to financial hardship, saying she had hoped to use the proceeds to support her family.

Shola Adeshina, whose wife also invested in the platform, said investors were attracted by claims that relatively small amounts could generate substantial returns.

He said reports of participants using money allegedly earned from the platform to purchase cars and build houses further encouraged people to join.

Adeshina said concerns about the platform became more serious when investors who had committed millions of naira visited a branch after payments stopped and reportedly discovered that the office had been abandoned.

How the Platform Operated
According to interviews with participants and promotional materials reviewed by the newspaper, PXES operated through a tiered membership system.

Participants paid specified amounts to register and were subsequently given access to an online dashboard where they were required to complete daily tasks described as orders.

An investor, Funmi Deinde, said the platform had different membership levels, including Star 1, Star 2 and Star 3.

According to her, Star 1 required about N21,600, Star 2 cost N54,800, while Star 3 required N207,000.

She said participants received access to a dashboard where products, including household items, were displayed for them to interact with as part of the daily tasks.

Deinde said participants were initially allowed to withdraw their earnings daily, but the withdrawal system was later changed to weekly as the number of members increased.

Another participant, Emmanuel Ajayi, said a N64,000 package could generate approximately N2,160 from daily tasks, while the N21,600 package generated about N720.

Promotional materials from the platform advertised packages starting from N21,600, with other packages costing N64,800 and N207,000.

The materials claimed that an investment of N21,600 could generate as much as N259,200 over 360 days, while N64,800 could allegedly generate up to N777,600 during the same period.

Participants were also encouraged to introduce new members and build networks.

A security guard who invested N64,000 said he initially hesitated to join after his sister introduced the platform to him.

He eventually invested following repeated persuasion and said he successfully withdrew about N20,000 on two occasions before losing the remaining funds when the platform stopped paying.

He added that his sister, who had built a larger network within the platform, lost more than N1m.

PXES Described Itself as Digital Marketing Company
Questions have also been raised over the actual nature of PXES and the source of funds used to pay participants.

At an event in Kabba, representatives of the organisation reportedly described PXES as a digital marketing and advertising company rather than an investment platform.

A company representative, Olubowale Ayodele, said the organisation provided digital marketing opportunities to unemployed people and graduates.

He encouraged people with smartphones to participate in what he described as digital marketing activities.

Another official, identified as the company’s training director, Eniola Oluwatobi, described PXES as an advertising company and claimed that it partnered with platforms including eBay and Amazon.

According to him, products were distributed to members through the PXES application for advertising purposes.
However, the manner in which participants were required to pay money to join the platform and subsequently receive returns has raised questions among financial experts.

Experts Warn Against Unlicensed Investment Platforms
A financial analyst, George Samuel, advised prospective investors to verify whether companies soliciting investment funds were authorised to do so before committing their money.

He said registration with the Corporate Affairs Commission did not automatically give a company the authority to collect deposits or solicit investment funds from members of the public.

Samuel urged Nigerians to check whether such organisations had the necessary licence from the Securities and Exchange Commission before investing.

He also warned against placing funds with unlicensed investment companies.

A banker, Kemi Junaid, identified promises of unusually high returns and guaranteed profits as major warning signs.

She said financial desperation and poor financial literacy often made people vulnerable to schemes that promised quick and substantial returns.

Junaid advised prospective investors to investigate how a company intends to generate the returns it promises rather than relying solely on testimonials from existing participants.

EFCC Urges Victims to Report Investment Scams

The Economic and Financial Crimes Commission said it would investigate cases of financial crimes and investment scams formally reported to it.

The EFCC spokesperson, Dele Oyewale, said the commission would look into any properly reported case involving a Ponzi scheme or investment scam.

Oyewale recalled that the commission had repeatedly warned Nigerians about investment scams and Ponzi schemes and advised members of the public to conduct proper due diligence before investing.

He said the EFCC remained committed to preventing financial crimes and protecting members of the public from avoidable financial losses.

However, he did not confirm whether the commission had commenced a specific investigation into the PXES case.

PXES Website Becomes Inaccessible
Attempts to access the platform’s known website were reportedly unsuccessful after the collapse.

Some investors also said the platform’s WhatsApp channel had been blocked.

Checks on its Facebook page showed that its last post was made on June 21. The page had largely been used to publicise training sessions, meetings and activities involving participants.

The platform had also used its social media presence to promote its operations and claim expansion across Nigeria and other African countries.

The collapse of PXES has once again raised concerns over the recurring emergence of online investment schemes promising unusually high returns to Nigerians.

In recent years, several platforms have collapsed after attracting large numbers of investors with promises of quick and substantial profits.

The development has renewed calls for Nigerians to verify the regulatory status of investment platforms and avoid schemes offering returns that appear unrealistic or disproportionate to the amount invested.

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