The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has raised concerns about the growing use of cryptocurrency by corrupt Nigerian politicians to conceal illicit wealth and evade scrutiny from anti-graft agencies.
Speaking at an event marking Africa Anti-Corruption Day, Olukoyede said virtual assets are increasingly being used to store stolen public funds and conduct illicit transactions.
Olukoyede warned that the anonymity and decentralization of blockchain technology have made cryptocurrencies an attractive avenue for laundering money and hiding wealth.
“Our findings show that fraudulent politicians are already perfecting schemes and hiding their loot in cryptocurrencies to beat the investigative blackness of anti-corruption agencies,” he said.
The event, which was monitored simultaneously in Abuja, Lagos, and Ibadan, featured several speakers who raised alarms about the risks posed by virtual assets. They emphasized the urgent need for regulation and public awareness, citing recent scams like the CBEX fraud, in which Nigerians lost over N1.3 trillion.
While acknowledging the legitimate financial utility of cryptocurrencies, Olukoyede cautioned that “as with every progressive innovation, fraud starts to usually evolve, evolve ways of perverting their genuine purposes.”
He added that stolen funds are now often warehoused in digital wallets, making recovery efforts more complicated.
Despite the challenges, Olukoyede assured that the EFCC is not powerless. He said the agency has invested in proactive training, cyber intelligence, and collaborative efforts to track and dismantle fraudulent crypto schemes. “Virtual asset fraud and investment scams are not hard nuts to crack,” he asserted.
In Lagos, where Olukoyede was represented by Zonal Director C.E. Michael Nzekwe, the EFCC reiterated that cryptocurrencies, though innovative, have become a tool for corruption and cross-border fraud. Nzekwe noted that fraudsters are exploiting the borderless nature of blockchain platforms to move illicit funds undetected.
Meanwhile, in Ibadan, Hauwa Ringin, the Acting Zonal Director of the EFCC, warned that virtual asset fraud and investment scams are spreading rapidly across the continent. She emphasized the need for improved awareness and enforcement to prevent unsuspecting Nigerians from falling victim.
In Abuja, the Deputy Governor of Economic Policy at the Central Bank of Nigeria (CBN), Muhammad Abdullahi, who spoke on behalf of CBN Governor Yemi Cardoso, confirmed that Nigeria is now a continental leader in crypto transactions. He said over $56 billion in crypto-related transactions were recorded between July 2022 and June 2023.
Abdullahi, however, warned that this explosive growth comes with severe risks. According to the CBN’s 2024 Financial Stability Report, there was a 45 percent increase in financial fraud cases, with 70 percent of the losses tied to digital platforms and unregulated virtual asset services.
He also noted that more than 30 Ponzi-style investment schemes using crypto narratives had been flagged by the Securities and Exchange Commission (SEC) and other agencies. Abdullahi stressed that such developments could erode public trust and harm Nigeria’s standing in the global financial system.
To address these concerns, the CBN and SEC have formed a joint regulatory committee with support from the EFCC and Nigerian Financial Intelligence Unit. Abdullahi said they are working to improve KYC (Know Your Customer) compliance and transaction monitoring across financial institutions.
The CBN is also collaborating with the EFCC to establish a National Virtual Asset Wallet to securely hold confiscated digital assets. Abdullahi emphasized that coordinated responses and stronger oversight mechanisms are key to combating crypto-related crimes.
Anti-fraud expert Kaina Garba, speaking in Lagos, highlighted the various tactics employed by scammers in the digital asset space. He explained that many criminals create fake tokens, launch bogus investment platforms, and use techniques like phishing and crypto mixers to defraud investors and launder money.
Garba also pointed out that, until recently, virtual assets operated in a regulatory vacuum in Nigeria. However, the newly enacted Investment and Securities Act 2025 now provides a comprehensive legal framework for digital assets. The EFCC has since enhanced its cybercrime capabilities to keep pace with these developments.
Representing the SEC, Divisional Head of Legal and Enforcement John Achile said the commission is actively regulating the digital asset market. He explained that SEC has introduced incubation streams—accelerated and managed—to assess the business models of applicants before issuing licenses.
In Ibadan, Professor of Criminology Oludayo Tade, delivering a lecture themed “Understanding Virtual Asset and Investment Fraud,” warned the public to remain vigilant. “Anything too good to be true is a red flag,” he said, emphasizing that exaggerated investment returns often signal fraud.
Oyo State FRSC Sector Commander Rosemary Alo, represented by DCC OPS Olugbesan, praised joint enforcement efforts, noting that tracking and regulating vehicle movements—especially those using fake or cloned number plates—has contributed significantly to curbing illicit financial flows and recovering stolen funds.
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