East Africa’s rulers saw what Gen Z can do – now they’re striking first

Last Friday, Albert Ojwang, a young blogger in the western Kenyan town of Migori, was arrested over a complaint by a senior police officer regarding a post on X and taken 350km (217 miles) away to the Central Police Station in the capital, Nairobi. By the next day, he was dead, with police claiming – incredibly – that he had committed suicide by banging his head against the cell walls. The truth, as confirmed by a postmortem, is that he was beaten to death.

This comes as no surprise to Kenyans who are depressingly familiar with police violence. But Ojwang’s arrest and brutal murder were more than that. The incident is a chilling message to a troublesome generation as the country approaches what has become its protest season – “do not test us”.

Not long before, Rose Njeri, another young Kenyan, was arrested. Her “crime”? Designing a digital tool to make it easier for the public to participate in hearings on the government’s controversial 2025 Finance Bill. The irony is both cruel and stark: a government that routinely exhorts citizens to engage in “public participation” arrested a citizen for doing precisely that efficiently and at scale.

These arrests are not isolated incidents. They are the latest flare-ups in a growing and deliberate crackdown on youth-led dissent. And they are a reminder that Kenya’s increasingly paranoid ruling elite is still haunted by the spectre of last year’s Gen Z protests – massive, spontaneous, decentralised demonstrations that erupted in response to the Finance Bill and its punishing economic proposals.

In fact, over the last decade, the annual publication of, and public debate over, the government revenue and tax proposals have become the main focal point of antigovernment protests, linked to widespread anger over the cost of living. Last year’s protests, however, took a new turn, sidelining the country’s politicians, giving voice to a new generation, and even forcing President William Ruto to veto his own bill and fire his cabinet.

That uprising was unlike any other in Kenya’s recent history: leaderless, tech-savvy, angry, and hopeful. It drew energy from online platforms and informal networks, cutting across ethnic and class divisions. For weeks, young people took to the streets, demanding an end not just to a specific bill, but to a broader system of exclusion, corruption, and indifference. The state responded with force. Dozens were killed. Others disappeared. The violence did not break the spirit of protest, but it did send a message: this government is willing to use deadly force to silence dissent.

And now, as the 2025 Finance Bill winds its way through the public consultation process, the early signs are that the cycle may repeat. The arrests of Ojwang and Njeri, even before protests have properly begun, suggest a strategy of preemptive suppression: neutralise the nodes of mobilisation before the network can activate.

But this paranoia is not uniquely Kenyan. Just weeks ago, Kenyan activist Boniface Mwangi and Ugandan journalist Agather Atuhaire were arrested while in Tanzania to attend the trial of opposition leader Tundu Lissu, and allegedly tortured and raped by Tanzanian police. This points to the emergence of a regional authoritarian consensus. Fearing a coming together of popular movements in their individual nations inspired by the successes of Kenya’s Gen Z movement, the Kenyan, Tanzanian, and Ugandan governments are forming their own informal alliance, sharing not just intelligence and resources, but political fears and tactics.

Their calculus is clear. Each is led by a regime facing economic turmoil, discredited democratic processes, and fragmented opposition movements. Each sees youth-led mobilisation as the most potent threat to its hold on power. Each has, in recent years, responded to such mobilisation with brutality. And, crucially, each knows that the costs of repression are lower than ever.

For much of the post-Cold War era, authoritarian excesses in Africa were tempered by the fear of inciting Western disapproval. Rhetorical condemnation was not just embarrassing but carried real risks, not only of losing aid or feeling the weight of economic sanctions, but, perhaps more consequentially, a loss of popular legitimacy. However, democratic decline and moral disarray in the West have dramatically altered that equation.

Today, the West is shedding the false image of moral superiority which cloaked its domination of the globe. From arming and supporting a genocide in Gaza to the brutal suppression of dissent on its own streets and the demonisation of immigrants and refugees, it turns out that the first world is just the third world in drag. Their words of condemnation for the atrocities and brutalities of others would now simply reek of dishonesty and hypocrisy.

Further, the same governments that once demanded good governance and civil rights now prioritise counterterrorism, migration control, and market access. They strike deals with autocrats, turn a blind eye to repression, and reframe their interests as “stability”. Western support for civil society has withered. Funding has declined. Visibility has shrunk. The result is a shrinking civic space and a growing sense of impunity among East African elites.

From the vantage point of these governments, this moment presents both a threat and an opportunity. The threat is clear: protests could spiral into a full-scale political reckoning. The opportunity is darker: to act now, preemptively and brutally, while the world is not looking and the opposition is disorganised.

But it is also a moment of possibility for the movements these regimes are trying to suppress.

The 2024 Gen Z protests in Kenya marked a political awakening. They showed that it is possible to bypass traditional gatekeepers – political parties, NGOs, foreign donors – and mobilise around economic justice and dignity. They rejected the logic of ethnic patronage and elite negotiation. And crucially, they exposed the hollowness of the old accusations that civic protest is always the work of “foreign puppets”.

By framing civic activism as inherently un-African or externally manipulated, regimes attempt to delegitimise protest and sow doubt. But today’s youth activists are pushing back – not by seeking validation from the West, but by grounding their struggles in lived reality: the daily pain of high taxes, joblessness, debt, and corruption.

The current crackdown is evidence that these movements have rattled the powerful. But fear is not the same as victory. The lesson of the past years is that organised, principled dissent is possible, and effective. What comes next must be regional. If authoritarianism is becoming a cross-border project, then so too must resistance. Kenya’s civic actors must stand with Tanzanian and Ugandan activists. Solidarity must be built not only through shared hashtags, but through shared strategy: legal defence networks, data collection on abuses, secure communication channels, joint campaigns.

Albert Ojwang’s death, Rose Njeri’s arrest, the violations against Boniface Mwangi and Agather Atuhaire – these are not aberrations. They are signals. Signals that the ruling classes of East Africa are preparing for a fight. The question is whether the rest of us are preparing to fight as well.

What’s behind Russia’s ‘evolving’ drone warfare in Ukraine?

Kyiv, Ukraine – Swarms of Russian kamikaze drones broke through Ukrainian air defence fire early on Tuesday, screeching and shrilling over Kyiv in one of the largest wartime attacks.

Oleksandra Yaremchuk, who lives in the Ukrainian capital, said the hours-long sound of two or perhaps three drones above her house felt new and alarming.

“This horrible buzz is the sound of death, it makes you feel helpless and panicky,” the 38-year-old bank clerk told Al Jazeera, describing her sleepless night in the northern district of Obolon. “This time I heard it in stereo and in Dolby surround,” she quipped.

Back in 2022, she crisscrossed duct tape over her apartment’s windows to avoid being hit by glass shards and spent most of the night in a shaky chair in her hallway.

This week’s Russian attack involved seven missiles and 315 drones – real, explosive-laden ones as well as cheaper decoys that distract and exhaust Ukraine’s air defence, Kyiv’s officials said.

The assault was the third since Ukraine’s June 1 sting to destroy Russia’s fleet of strategic bombers on four airstrips, including those in the Arctic and Siberia.

Fire and smoke are seen in the city after a Russian drone strike this month [Gleb Garanich/Reuters]

The wave of attacks also showed Russia’s tactics of overwhelming Ukrainian air defence units with the sheer number of targets that approach from different directions.

“The drones have been evolving for a while, now [the Russians] use massiveness,” Andrey Pronin, one of Ukraine’s drone warfare pioneers who runs a school for drone pilots in Kyiv, told Al Jazeera.

The attack mostly targeted Kyiv, killing one woman, wounding four civilians, damaging buildings in seven districts and causing fires that shrouded predawn Kyiv in rancid smoke.

It damaged the Saint Sophia Cathedral, Ukraine’s oldest, whose construction began a millennium ago after the conversion of Kyivan Rus, a medieval superpower that gave birth to today’s Ukraine, Russia and Belarus.

The onslaught also hit the southern city of Odesa, killing two civilians, wounding nine and striking a maternity ward in the Black Sea port that lies close to annexed Crimea and lacks Kyiv’s Western air defence systems.

‘The Russians learn, every time, after each flight’

The Russia-Ukraine war triggered the evolution of drones that already rewrote the playbook of warfare globally.

While Kyiv focuses on pinpointed strikes on Russian military infrastructure, oil refineries, airstrips and transport hubs, some observers believe Moscow deliberately chooses to strike civilian areas to terrify average Ukrainians – and perfects the strikes’ lethality.

“Of course, [Russians] learn, every time, after each flight. They make conclusions, they review how they flew, where mobile [Ukrainian air defence] groups were,” Pronin said.

To save pricey United States-made anti-drone missiles, Ukraine employs “mobile air defence units” that use truck-mounted machineguns often operated by women and stationed on the outskirts of urban centres.

The Russians “used to fly the drones in twos, now they fly in threes,” Pronin said about the Iranian-made Shahed drones and their modified Russian Geran versions that carry up to 90 kilogrammes of explosives.

Firefighters work at the site of a Russian drone strike, amid Russia's attack on Ukraine, in Kyiv, Ukraine June 10, 2025. REUTERS/Thomas Peter TPX IMAGES OF THE DAY
Firefighters work at the site of a Russian drone attack in Kyiv. Ukrainians say this week’s assault was the biggest Russian drone attack since the start of the war [Thomas Peter/Reuters]

Nikolay Mitrokhin, a researcher with Germany’s Bremen University, named three factors that contribute to the harrowing efficiency of recent drone attacks.

Firstly, the number of Russian drones rose dramatically, requiring more air defence power and, most importantly, more ammunition, he told Al Jazeera.

“The latter causes most problems, and after three massive attacks within a week, their number possibly didn’t simply suffice,” he said.

Earlier this week, the White House diverted 20,000 advanced anti-drone missiles intended for Ukraine to Washington’s allies in the Middle East.

Secondly, the Geran (“Geranium”) drones “evolve” and fly more than five kilometres above the ground at a height unreachable to firearms and many surface-to-air missiles, Mitrokhin said.

These days, Gerans have a range of 900km (660 miles) and are linked to their operators via satellite, US-made Starlink terminals smuggled into Russia or even hacked SIM cards of Ukrainian cellphone operators, according to Ukrainian officials and intelligence.

Investigators look at what they say is the engine of a Russian Geran drone after it slammed into an apartment building during a Russian drone strike, amid Russia's attack on Ukraine, in Kyiv, Ukraine June 6, 2025. REUTERS/Thomas Peter
Investigators looked at what they said was the engine of a Russian Geran drone after it slammed into an apartment building in Kyiv on June 6, 2025 [Thomas Peter/Reuters]

A Russian plant in the Volga River city of Yelabuga started manufacturing Gerans in 2023 and now churns out some 170 of them daily.

Thirdly, Russia uses more decoy drones that waste air defence ammunition, Mitrokhin said.

Therefore, Kyiv “needs massive amounts of drones that could quickly gain the height of five to six kilometres, locate flying Gerans and their analogues and shoot them down”, he said.

Instead, Ukrainian forces have focused on long-distance strike drones such as Lytyi (“Fierce”) that have hit military and naval bases, oil depots, arms factories and metallurgical plants in western Russia, he said.

“Now, Ukraine needs to quickly change its strategy and produce 5,000-10,000 high-flying drone hunters a month. Which is not easy,” he concluded.

‘I felt the return of what we all felt in 2022’

Russia’s attacks underscore Washington’s failure to start the peace settlement of Europe’s largest armed conflict since 1945.

The attacks “drown out the efforts of the United States and others around the world to force Russia into peace,” Ukrainian President Volodymyr Zelenskyy wrote on Telegram, hours after Tuesday’s attack.

US President Donald Trump pledged to end Russia’s war on Ukraine “in 24 hours,” but his administration’s diplomatic efforts yielded no results.

Despite occasional criticism of the Kremlin’s warfare in Ukraine, Trump prefers not to use the White House’s diplomatic and economic arsenal to force Russia to start a peace settlement or even a 30-day ceasefire that Kyiv proposed.

While Washington continued to supply US military aid in accordance with the commitments of President Joe Biden’s administration, Trump’s cabinet did not pledge to provide any additional arms or ammunition shipments.

“This administration takes a very different view of that conflict,” US Defense Secretary Pete Hegseth told a congressional hearing on Tuesday.

“We believe that a negotiated peaceful settlement is in the best interest of both parties and our nation’s interests, especially with all the competing interests around the globe,” he said, without specifying the extent of cuts.

Trump’s policies leave many Ukrainians reeling.

“He single-handedly lost the Cold War to Putin,” Valerii Omelchenko, a retired police officer in central Kyiv told Al Jazeera. “I honestly can’t fathom how one can be so indecisive and cowardly towards Russia.”

The horror of drone attacks, however, helps further unite Ukrainians, he said.

“In the morning, I felt the return of what we all felt in 2022, when we were treating total strangers like family, asking them how they were, trying to help them,” he said.

A resident stands at the site of an apartment building hit by a Russian drone strike, amid Russia's attack on Ukraine, in Odesa, Ukraine June 10, 2025. REUTERS/Nina Liashonok
A resident stands near the site of an apartment building hit by a Russian drone strike in Odesa, on June 10, 2025 [Nina Liashonok/Reuters]

Russian drone attacks kill three, wound 60 in Ukraine’s Kharkiv

Russian drone strikes have killed three people and wounded 60, including children, in the northeastern city of Kharkiv, officials say.

The city, just 30 kilometres (18 miles) from the Russian border, bore the brunt of Russia’s latest aerial assault early on Wednesday, with 17 drones striking two residential areas, Mayor Ihor Terekhov said.

“Those are ordinary sites of peaceful life … that should never be targeted,” he wrote on Telegram.

Among the 60 wounded in the attacks were nine children aged between 2 and 15, according to Kharkiv regional head Oleh Syniehubov.

One Kharkiv resident, Olena Khoruzheva, told the AFP news agency how she had run with her two children away from the windows of her building when she heard the drones approach.

“The younger one lay on the floor, hands on his head. I was on top of him,” the 41-year-old pharmacist said.

“We heard it approaching. Silence, and then we were thrown against the wall … there were more explosions, then we heard people shouting ‘Help! Help!’”

Her 65-year-old neighbour was killed in the attack, she said.

The assault left emergency crews, city workers and volunteers scrambling through the night to rescue people from burning buildings and restore essential services in the city, which has been frequently targeted in recent months, The Associated Press news agency reported.

“We stand strong. We help one another. And we will endure,” the city’s mayor wrote on Telegram.

Nightly assaults

The strikes on Kharkiv were part of a wave of 85 drones deployed by Russia overnight, the Ukrainian Air Force said, adding that its air defence systems had intercepted 40.

The latest assault followed much larger Russian drone and missile attacks in the previous days, in retaliation from Moscow for an audacious Ukrainian drone operation, codenamed “Spiderweb”, that knocked out aircraft stationed at military bases on Russian soil.

Moscow sent a record bombardment of almost 500 drones overnight on Monday, followed by a wave of 315 drones and seven missiles the following night.

Kyiv has sent its own drones in response, with Moscow’s Ministry of Defence saying 32 Ukrainian drones were intercepted overnight, the AFP news agency reported.

The exchange of aerial attacks has continued even as both sides have participated in recent days in prisoner exchanges agreed to in talks in Istanbul earlier this month.

The exchanges began on Monday and continued on Tuesday, with Ukrainian President Volodymyr Zelenskyy posting footage of emotional reunions as shaven-headed prisoners stepped off a bus and draped themselves in Ukrainian flags.

Two rounds of talks between Russia and Ukraine have failed to yield a breakthrough in agreeing to a ceasefire and ending the war.

Second night of anti-immigrant riots in Northern Ireland town

Violence flared for a second night in a Northern Irish town after “racially motivated” attacks following a peaceful protest over an alleged sexual assault.

Hundreds of protesters, many of them masked, took to the streets of Ballymena on Tuesday, throwing petrol bombs, bottles and masonry as police responded with water cannon.

There was a heavy police presence in one area of the town, about 30 miles (48km) northwest of Belfast, as protesters set fire to a car and barricades. Police also fired plastic baton rounds to disperse the crowds.

The unrest first erupted on Monday night after a vigil in a neighbourhood where an alleged sexual assault had happened on Saturday.

“This violence was clearly racially motivated and targeted at our minority ethnic community and police,” Ryan Henderson, assistant chief constable, said on Tuesday. “It was racist thuggery, pure and simple, and any attempt to justify it or explain it as something else is misplaced.”

Tensions in the town, which has a large migrant population, remained high throughout the day on Tuesday, as residents described the scenes as “terrifying” and said those involved were targeting “foreigners”.

“Last night, unfortunately, has probably scared a lot of people. We are actively working to identify those responsible and bring them to justice,” said Henderson.

Two teenage boys, charged by police with the attempted rape of a teenage girl, had appeared in court on Monday, where they asked for a Romanian interpreter, local media reports said.

The trouble began when masked people “broke away from the vigil and began to build barricades, stockpiling missiles and attacking properties”, police said.

Security forces also came under “sustained attack” with petrol bombs, fireworks and bricks thrown by rioters, injuring 15 officers, including some who required hospital treatment, according to the force.

Four houses were damaged by fire, and windows and doors of homes and businesses were smashed.

Northern Ireland saw racism-fuelled disorder in August after similar riots in English towns and cities triggered by the fatal stabbing of three young girls in Southport, northwest England.

Which teams have qualified for the 2026 FIFA World Cup and who are out?

Five-time champions Brazil have confirmed their participation in the 2026 FIFA World Cup by defeating Paraguay 1-0, thanks to a goal by star forward Vinicius Jr in front of a jubilant home crowd in Sao Paulo.

Playing under new head coach Carlo Ancelotti, the Selecao went ahead at the stroke of half-time when the Real Madrid star found the net, much to the delight of the 46,000 fans at the Corinthians Arena on Tuesday.

In other major World Cup qualifying results, war-torn Palestine were left heartbroken when Oman drew level against them from a penalty converted deep into stoppage time in their Asian Football Confederation (AFC) qualifying match in Amman, Jordan.

Palestine have been playing their international fixtures at neutral venues, including Jordan, Kuwait and Qatar. Israel’s war on Gaza, its control and destruction of sports facilities and venues in Gaza and the occupied West Bank have left the players unable to travel and play at their home venue, the Faisal Al-Husseini International Stadium in ar-Ram, a town northeast of occupied Jerusalem.

Needing a win to reach the fourth round of the AFC qualifiers, Palestine led the home side through Oday Kharoub’s goal at the end of the first half.

The Al-Fidai seemed to have done enough until they conceded a penalty in the last moments of the match, and Essam al-Subhi’s spot kick in the 97th minute ended the game in a draw, crushing the Palestinian dream of having another shot at qualification by proceeding to the fourth round.

Oman have now taken up that spot.

Despite their team fighting to keep their World Cup dream alive against Palestine, fans in Oman showed support for the visiting side as Israel’s war rages on in Gaza [Ibraheem al-Omari/Reuters]

Which teams have confirmed their qualification for the 2026 FIFA World Cup?

After the latest round of qualifying matches, here is a breakdown of the confirmed contenders from each of the six regions:

Africa: None of the 54 nations involved in the qualifiers has been able to confirm their spots as the first round of qualifying matches does not conclude until October 16.

Asia: Iran, Uzbekistan, South Korea, Jordan, Australia, Japan.

Europe: None. Similar to Africa, none of the 54 European teams vying for 16 qualification spots have confirmed their berths as their first-round matches will run until November 18.

North, Central American and Caribbean region: Canada, Mexico and USA. With the World Cup host nations taking three spots, only three are left up for grabs and will be decided on November 18.

Oceania: New Zealand. With one spot up for grabs and 11 nations fighting for it, New Zealand emerged victorious and took the spot by winning the third-round playoff final against New Caledonia on March 24.

South America: Argentina, Brazil, Ecuador.

Lionel Messi, dressed in his blue and white Argentine stripes, is raised aloft by a crowd of supporters. In one hand, he carries the FIFA trophy.
Lionel Messi’s Argentina were amongst the first teams to qualify for the 2026 FIFA World Cup and have a chance of defending the trophy they won in Qatar in 2022 [File: Martin Meissner/AP]

Which major teams have been eliminated from qualification for the 2026 FIFA World Cup?

Chile, third-place finishers in 1962, are among the biggest names confirmed out of the next World Cup.

While China are not considered among the football powerhouses in Asia, the nation’s focus on building the game at home and seeing its team in another World Cup since 2002 was crushed on June 5.

Which teams can still qualify for the 2026 FIFA World Cup?

Apart from the nine African and 16 European spots still fully up for grabs, the others that are still in the race for a World Cup spot are:

Asia: Qatar, UAE, Saudi Arabia, Indonesia, Iraq, and Oman are vying for the two direct qualification slots for the World Cup and one intercontinental playoffs spot.

South America: Uruguay, Paraguay, Colombia, Venezuela and Bolivia will fight for the three remaining World Cup slots, while Peru can only advance to the intercontinental playoffs.

North, Central American and Caribbean region: Honduras, Bermuda, Costa Rica, Trinidad and Tobago, Curacao, Haiti, Panama, Nicaragua, Jamaica, Guatemala, Suriname and El Salvador have all advanced to the third round, from where three teams will directly qualify for the World Cup. The three second-placed teams from each group will then fight for the intercontinental playoffs spot.

Oceania: New Caledonia have qualified for the intercontinental playoffs.

When will all teams for the 2026 FIFA World Cup be confirmed?

As late as March 31, 2026. With the European qualification rounds stretching to March and the intercontinental playoff final also scheduled for the same month, we will not know our final 48 teams for the World Cup until less than three months ahead of the tournament.

When is the 2026 FIFA World Cup scheduled?

The tournament begins in Mexico City on June 11 and ends with the final in New Jersey on July 19.

MetLife Stadium in East Rutherford, NJ
The MetLife Stadium in East Rutherford, New Jersey, US, will host the final of the 2026 FIFA World Cup [File: Seth Wenig/AP Photo]

‘I invested in a Ponzi scheme’: Nigerians fall victim to crypto scams

Lagos, Nigeria — Mandela Fadahunsi, who works at a technical training school in Ikeja in Nigeria’s Lagos, never believed he could fall victim to a Ponzi scheme.

On April 6, the 26-year-old was starting his day when a WhatsApp notification lit up his phone screen. Someone on the group chat for investors of the cryptocurrency investment platform, Crypto Bridge Exchange (CBEX), had tried and failed to withdraw some funds, so they wanted to confirm if it was a general issue. Fadahunsi quickly logged on to his digital wallet and tried to withdraw 500 USDT, a cryptocurrency that stands for United States Dollar Tether, or simply Tether.

But 24 hours later, a process that should have taken just 10 minutes was yet to complete. He knew then that something had gone wrong. He started to panic, but half-hoped it was just a glitch or a minor system error.

“They [CBEX administrators] said it was as a result of the excessive volume of people trying to withdraw, and that all withdrawals have been placed on hold until 15th of April,” Fadahunsi told Al Jazeera.

On the 15th, he and fellow investors waited but heard nothing. On subsequent days, the administrators gave more excuses until the site stopped working altogether, and everyone’s money disappeared without a trace. That is when he realised he had been scammed and might never be able to recover the 4,596 USDT stablecoin in his wallet.

While Fadahunsi tallied his losses, the issue went viral on social media platforms.

Many more Nigerians shared their stories of loss, while others mocked them for losing their money to scammers. Some members of the public, filled with rage, attacked and ransacked CBEX offices in Ibadan and Lagos.

CBEX launched operations in Nigeria in July 2024, claiming to be able to generate immense trading profits using generative artificial intelligence. By January, it had gained serious popularity through referrals and smart advertising.

Fadahunsi and thousands of other people invested with the hope of making a maximum profit – the scheme promised up to 100 percent return on investment after a 40- to 45-day maturation period. At the start, the scheme did pay out, and the testimonies of successful initial investors attracted more people to sign up.

But after nine months of operation, the music stopped as the platform made away with an estimated 1.3 trillion naira ($840m), according to the official Nigerian Financial Intelligence Unit (NFIU). It left investors stunned.

Nigeria’s anticorruption agency, the Economic and Financial Crimes Commission (EFCC), has since labelled CBEX a Ponzi scheme. Experts say the organisers of such scams usually promise to invest people’s money in something that generates high returns, but in reality, it is investment fraud that pays existing investors with funds collected from new ones. Once a large number of people cash out, and new investors into the scheme dry up, it collapses.

Ponzi schemes, including CBEX, are usually not backed by any discernible economic activity, experts say. According to Ikemesit Effiong, from the Lagos-based socioeconomic advisory firm, SBM Intelligence, most times these businesses do not have anything to sell and have no recognisable business models. Even the agriculture-based ones claim to have products that investigators are unable to track. They also largely rely on existing investors to bring in new investors who serve as their downlink in the pyramid scheme.

Experts say that in Nigeria, widespread financial illiteracy, lax regulations, greed, economic hardship and peer pressure make investors susceptible to the machinations of Ponzi organisations that combine aggressive advertising, word-of-mouth campaigns charged by incentives, and initial high returns.

But at the end, the schemes leave victims – many of whom invest their savings, business capital, and borrowed money – unable to do anything but watch their hard-earned money disappear.

A moneychanger counts Nigerian currency notes for a customer in Lagos [File: Temilade Adelaja/Reuters]

‘Make some gains’

Fadahunsi first heard about the CBEX scheme from colleagues at the start of the year. Initially, he was hesitant. But a few days later, his neighbour also mentioned the platform. Recognising that his close associates were participating, and not wanting to miss out, he decided to invest.

“I also thought the money was just sitting in my account, and it could be somewhere where I can make some gains on my money,” he explained.

In early February, he dipped into his rent savings and withdrew the entire 800,000 naira ($517). With that, he bought 500 USDT from the crypto exchange platform Buybit, receiving the coin in his digital CBEX wallet.

Four times a day on the CBEX platform, administrators dropped a code, which they call a “signal”. Investors were required to copy and paste the code into a section of their portal within the hour. CBEX said AI would then use that to make a trade, basically to buy and sell or change positions in such a way that it made a profit from price fluctuations on the investors’ behalf. Each time Fadahunsi pasted in the code, he would get 4.7 to 5 USDT as a profit, all of which accumulated towards his returns.

“So the more you do it, the more the percentage increases. In a month, I got double of 500 USDT,” he said, adding that there were also bonuses for things like referrals.

In March, users said CBEX made an adjustment where they no longer input the signal. Instead, investors just had to turn on an “AI hosting” option at the start of the day. But some investors say this was likely just a ploy to keep them going, to convince them they were still making a profit before everything crashed in April.

While some investors withdrew their returns, by the time CBEX crashed, Fadahunsi had not withdrawn any money. He had wanted to maximise the investment opportunity, to leave the funds to grow for five to six months before using them to buy a plot of land to build his future home. Now, that dream is dead.

“It is very hard, but thank God that my landlord is actually understanding,” he said.

“I am not proud of opening my mouth [to say] that I actually invested in a Ponzi scheme,” he lamented. “If I wasn’t greedy, I should have been able to withdraw two to three times on the platform, and it would have been successful.”

Money
The USDT that CBEX invested in is a stablecoin pegged to the US dollar [File: Afolabi Sotunde/Reuters]

A history of Ponzi schemes

Even before CBEX, Ponzi schemes were not new in Nigeria.

In March, Nigeria’s anticorruption agency published a list of 58 Ponzi schemes presently operating in the country, and advised the public to “be vigilant and proactive”. This highlights the widespread presence of fraudulent entities masquerading as legitimate businesses in the country: in 23 years, Nigerians lost 911 billion naira ($589m) to Ponzi-related scams, the National Deposit Insurance Corporation (NDIC), which protects the country’s banking system, said in 2022.

Often, Ponzi schemes are able to operate by leveraging grey areas, such as obtaining an irrelevant certification that exaggerates their significance or legitimacy.

CBEX, for instance, obtained the EFCC’s anti-money laundering certificate through the corporate identity of ST Technologies International Ltd, and paraded it as a kind of clearance for conducting business.

However, the NFIU said CBEX was never granted a registration by the Securities and Exchange Commission (SEC) to operate as a Digital Assets Exchange, solicit investments from the public or perform any other function within the Nigerian capital market.

Legitimate businesses can be verified by checking the SEC website. However, experts say the vast majority of those who invest in shady schemes seem unaware or uneducated about this – 38 percent of Nigerians are financially illiterate, according to a 2023 central bank report.

At the same time, other victims may be willing participants, at least at first.

Joachim MacEbong, a senior analyst at Stears, a Lagos-based financial advisory firm, said while some victims are unwitting, others intentionally walk into Ponzi schemes hoping to make a quick profit before it crashes.

“There are those who know it is a scam, but they always feel they could cash out before everybody else. And so they would make that calculation, and it is largely because of the situation in the country; there is a lot of hardship. This kind of hardship increases the people’s desire to take risks and gamble with their very important funds,” he explained.

Nigeria’s economy has been on a downward spiral for decades, and is worse now that the country is going through its toughest economic downturn in about 30 years. Food prices have soared, and basic amenities are becoming inaccessible as the inflation rate sits at 23.71 percent. Against this backdrop, some see Ponzi schemes as a fast way to break out of the vicious cycle of poverty.

Like the proverbial early bird, early investors benefitted from the CBEX scheme, multiplying their returns for several months. Although social media is agog with complaints and bitter disappointment, some people said they had been able to make major purchases such as land and cars from their investment.

“The time scale at which you enter the investment will determine whether it will be a good investment or you will be a victim,” said Effiong of SBM Intelligence, but he added that many new investors are unaware of this catch.

‘We had a lot of plans’

Waris Oyedele is one of the people who invested their savings in CBEX because of worsening financial hardship in the country.

When he realised that the investment had crashed, he wept.

The 25-year-old comes from a low-income family. He graduated from Obafemi Awolowo University last year, but when he could not get a job, he started working as a shoemaker.

In January, he invested his savings of 800,000 naira (500 USDT); by March he had made 1,200 USDT.

He gave the returns to his younger brother to reinvest to help him pay for his future university studies, and in doing so, help ease their father’s financial burden.

“I felt bad [when we lost the money] because we had a lot of plans on it,” Oyedele said.

“I had a plan of buying a computer and going into UI/UX. Now it has gone.”

He is deeply affected by the situation and has reduced the way he spends his tiny income as he tries to rebuild his savings for future use and to support his brother.

Ponzi schemes play on psychology and human instincts by making it seem as though easy money is within reach, Effiong of SBM said.

All investments involve some form of greed, Effiong explained, and the promise of ending up with a higher return is one of the most elementary forms of human motivation: we all want more and as quickly as possible.

“What [a Ponzi scheme] does is that it also unlocks the deep-seated psychological bend for human beings to join groups – the obvious fear of missing out,” he said. “It also thrives on really aggressive marketing – all of that is to prey on the psychology of potential investors to not slow down.”

Money
Nigerians lost more than $500m to Ponzi-related scams in 23 years, according to the National Deposit Insurance Corporation [File: Akintunde Akinleye/Reuters]

Agile tactics

Over the years, Ponzi schemes have employed several techniques to appeal to people, even going the extra mile to try and build public trust and goodwill. CBEX, for example, organised a sports competition and ran scholarships for schoolchildren to throw off suspicion, experts said.

In Nigeria, schemes rely heavily on existing investors who are incentivised to introduce new investors. They also engage in aggressive marketing using local and social media, sometimes involving radio, influencers and celebrity endorsements. Afrobeats stars Davido and Rema are some of the most popular celebrities to have unknowingly endorsed and made promo videos for Ponzi schemes in the past.

Ponzi schemes are also becoming increasingly sophisticated and dynamic as they leverage the latest technologies and digital tools, experts say.

“Many of them have apps with wonderful user experiences, which lend an air of credibility to their enterprise. Many of these scammers go to great lengths to design their products in such a way that they look and appear credible,” Effiong said.

MacEbong from Stears agreed, saying fake news and misinformation campaigns will become supercharged using AI tools, making it easier to hoodwink unsuspecting victims.

“There are numerous examples of generative AI being used to fool people who are even well informed and more savvy. When you turn these various tools against people with much lower exposure and information, they are practically defenceless,” MacEbong explained.

Regulators such as the SEC must become more proactive and come up with agile tactics to rein in Ponzi schemes and protect the public from illegitimate enterprises and shut them down before they cause harm, experts told Al Jazeera.

Businesses must be registered and thoroughly vetted because Ponzi schemes have been erroneously certified in the past, Effiong emphasised.

“There has to be a lot of financial education. Financial literacy is critical, which goes beyond how to make money, but [also] to educate the public on the tell-tale signs of Ponzi schemes. The responsibility also lies with the general public to educate themselves. If it sounds too good to be true, chances are it is too good to be true,” he said.

On May 26, EFCC said it had recovered a portion of the money stolen by CBEX and arrested two individuals promoting it. Al Jazeera tried to contact CBEX for comment through its website and publicly available phone numbers, but all were unavailable or out of service.

Meanwhile, many investors like Fadahunsi have lost hope and believe that the money they invested is all gone.