Nigerians who invested thousands and millions of naira in the online platform PXES are counting their losses after the scheme stopped paying returns and became inaccessible.
The platform reportedly stopped payments in early September, leaving investors unable to withdraw their funds or reach its operators.
The development has triggered anger among participants, with some investors storming PXES offices in Adamawa and Kogi states and reportedly removing office equipment in an attempt to recover part of their losses.
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PXES had attracted participants with promises of substantial returns. Reports reviewed by Saturday PUNCH indicated that some packages allegedly offered returns ranging from 25 per cent to 50 per cent, while certain packages were said to promise as much as 120 per cent. The publication, however, said it could not independently verify all the reported returns.
Investors storm offices
In Adamawa and Kogi states, frustrated investors reportedly visited PXES offices after being unable to access their money.
Videos circulating online showed people removing chairs, tables and other items from the company’s premises in Yola, with similar scenes reported at the Kabba office.
A man who reportedly invested about N209,000 was seen in one of the videos lamenting his inability to recover his funds.
In Kabba, the platform’s manager had reportedly assured investors that the company would compensate them after payments stopped. However, the office was allegedly shut three days later, leaving investors uncertain about the whereabouts of the operators and the fate of their money.
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Victims recount losses
One of the investors, Bunmi Awodipe, said she was encouraged to join PXES after three friends showed her evidence of receiving returns.
Awodipe said she invested N200,000 and initially received N7,000 weekly for three weeks before payments stopped.
She later visited the company’s office but found it locked and apparently abandoned.
Another investor, Deji Mulero, said he registered with N65,000 on September 4 after a customer introduced him to the platform, only for the scheme to stop operating shortly afterwards.
A participant identified as Wale said he invested N207,000 and had accumulated nearly N600,000 on his account before the platform became inaccessible.
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For 68-year-old Jumoke Talabi, the investment was intended to help pay her granddaughter’s school expenses and meet household needs.
Talabi said she invested N64,800 after seeing other participants receive payments and had previously received N70,000 from the platform.
She said she expected another payment but was unable to withdraw her money when the platform’s withdrawal period arrived.
Talabi said she invested because of financial hardship and had hoped the returns would help her meet basic household expenses.
Shola Adeshina, whose wife also invested in PXES, said stories of participants allegedly using their earnings to purchase cars and build houses made the scheme attractive.
He said concerns increased after investors who had committed millions of naira reportedly visited a branch following the suspension of payments and found the office abandoned.
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How the platform operated
Interviews with participants and promotional materials indicated that PXES used a tiered membership structure. Participants paid specified amounts to join and were then given access to an online dashboard where they completed daily tasks described as orders.
According to participant Funmi Deinde, the platform had different membership levels, including Star 1, Star 2 and Star 3, with entry amounts of about N21,600, N54,800 and N207,000 respectively.
She said members interacted with products displayed on their dashboards and were rewarded for completing the assigned tasks.
Deinde said PXES initially allowed participants to withdraw earnings daily, but the system was later changed to weekly withdrawals as membership increased.
Another participant, Emmanuel Ajayi, said the N64,000 package generated about N2,160 from daily tasks, while the N21,600 package generated approximately N720.
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Promotional materials reportedly showed packages starting from N21,600, alongside packages of N64,800 and N207,000.
The materials claimed that a N21,600 investment could generate up to N259,200 over 360 days, while N64,800 could generate up to N777,600 within the same period.
Participants also said members could recruit new participants and build networks.
PXES: Investment platform or digital marketing company?
Questions have emerged over the nature of PXES and how the returns paid to participants were generated.
At an event in Kabba, representatives of the company reportedly described PXES not as an investment platform but as a digital marketing and advertising business.
A company representative, Olubowale Ayodele, said the organisation provided digital marketing opportunities for unemployed people and graduates.
He encouraged people with smartphones to participate in the programme, claiming that one member of his team was earning N700,000 weekly.
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Another official, identified as training director Eniola Oluwatobi, described PXES as an advertising company that partnered with businesses including eBay and Amazon.
He said participants used the PXES application to advertise products supplied through the platform.
At the same event, the Obadofin of Oweland, Olusegun Are, described PXES as an income opportunity and claimed that the organisation had distributed food items to more than 300 elderly people in Kabba.
Financial experts warn investors
The collapse has raised questions about whether PXES had the necessary authorisation to solicit investment funds from members of the public.
Financial analyst George Samuel advised Nigerians to establish whether a company is licensed to collect deposits or solicit investments before committing funds.
He noted that registration with the Corporate Affairs Commission does not, on its own, authorise a company to accept investment funds from the public.
Samuel urged prospective investors to verify the relevant Securities and Exchange Commission licence and conduct proper due diligence before investing.
Banker Kemi Junaid also identified promises of unusually high returns and guaranteed profits as warning signs.
She advised potential investors to understand how a platform generates the returns it promises instead of relying solely on testimonials from existing participants.
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EFCC asks victims to report investment scams
The Economic and Financial Crimes Commission said it would examine cases of financial crimes and investment scams formally reported to it.
EFCC spokesperson Dele Oyewale said the commission would look into any Ponzi scheme or investment scam properly reported by members of the public.
He also recalled that the commission had repeatedly warned Nigerians to conduct due diligence before investing in such schemes.
However, Oyewale did not confirm that the EFCC had opened a specific investigation into PXES.
PXES website reportedly inaccessible
The crisis comes amid reports that the PXES website is no longer accessible.
Saturday PUNCH also reported that some investors said the platform’s WhatsApp channel had been blocked, while checks on its Facebook page showed that its last post was made on June 21.
The page had reportedly been used to publicise training sessions, meetings and other activities involving participants.
PXES had also claimed through some of its social media posts to have impacted more than one million members through financial stability and welfare support.
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The reported collapse adds to a series of investment platforms that have left Nigerian participants unable to access their funds after promising substantial returns.
Previous cases cited in the report include CBEX, EMAAR and XM Future Music Group, which also faced reported payment and withdrawal problems.
The developments have renewed calls for Nigerians to verify the regulatory status and business model of investment platforms before committing their funds.
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