Nigerians who invested in an online platform known as PXES are counting their losses after the platform reportedly stopped paying returns and became inaccessible in early September.
The development has left investors who committed amounts ranging from tens of thousands of naira to millions unable to withdraw their funds or establish contact with the platform’s operators.
The situation reportedly triggered anger in parts of the country, with some aggrieved investors storming PXES offices in Adamawa and Kogi states and removing items from the premises.
Investors Lured by High Returns
According to reports, PXES attracted participants with promises of substantial returns, with some packages reportedly offering returns ranging from 25 per cent to 50 per cent and, in certain cases, as high as 120 per cent.
Investors said the platform initially made payments, encouraging more people to commit funds.
One investor, Bunmi Awodipe, reportedly invested ₦200,000 after friends showed her evidence of receiving payments. She said she received about ₦7,000 weekly for three weeks before payments stopped.
Another participant, Deji Mulero, said he registered with ₦65,000 on September 4 but lost access to his investment shortly afterwards.
A separate investor identified as Wale said he put ₦207,000 into the platform and had accumulated almost ₦600,000 on his account before the system stopped operating.
Investors Storm Offices
The collapse reportedly sparked protests at PXES offices in Yola, Adamawa State, and Kabba, Kogi State.
Videos circulating online allegedly showed some investors removing chairs, tables and other items from the Yola office as they sought to recover part of their losses.
In Kabba, investors reportedly found the company’s office shut after management had earlier sent assurances that affected participants would be compensated for their losses.
The closure subsequently left many investors uncertain about the whereabouts of the operators and the fate of their money.
How the Platform Operated
According to accounts from participants, PXES used a tiered membership system in which individuals paid different amounts to access an online dashboard and complete daily tasks.
Reported packages included approximately ₦21,600, ₦64,800 and ₦207,000, with participants claiming that the platform generated daily earnings based on their membership level.
Participants also said members could introduce new users and build networks within the platform.
However, PXES representatives reportedly described the organisation differently, saying it operated as a digital marketing and advertising company rather than an investment scheme.
The representatives claimed members were given products through the platform’s application to promote online, while also describing the programme as an income opportunity for unemployed Nigerians and graduates.
Questions Over Regulation
The collapse has renewed concerns about the risks associated with platforms promising unusually high financial returns.
A financial analyst quoted in the report advised prospective investors to confirm whether an organisation is properly authorised to collect investment funds before committing money.
The analyst also stressed that registration with the Corporate Affairs Commission does not, by itself, amount to a licence to accept deposits or solicit investment funds from members of the public.
Financial experts further warned Nigerians to be cautious of schemes promising unusually high or guaranteed returns and to investigate how such platforms generate the profits they promise.
The PXES situation highlights the importance of carrying out proper regulatory checks and financial due diligence before investing money in online platforms.
