The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has revealed that some corrupt Nigerian politicians are now using cryptocurrencies to conceal stolen public funds and evade detection by anti-corruption agencies.
Speaking at an event marking Africa Anti-Corruption Day, Olukoyede said the EFCC had uncovered a growing trend of public officials exploiting crypto wallets to launder money and carry out illicit transactions. The event was monitored in Abuja, Lagos, and Ibadan.
He noted that virtual asset fraud is rapidly increasing and warned that fraudulent politicians are perfecting methods to hide their loot in crypto wallets to bypass investigations. “Stolen funds and unexplained wealth are being warehoused in wallets, and payments for services are being done through this window,” he explained.
While acknowledging that the rise of virtual assets has revolutionised global financial transactions, Olukoyede stressed that it has also opened new avenues for money laundering and financial crimes. “Technology is moving at supersonic speed around the world. But as with every progressive innovation, fraudsters evolve ways to pervert genuine purposes,” he said.
Olukoyede assured that the EFCC is not helpless against such sophisticated schemes, emphasising that proactive training and intelligence sharing have helped the agency detect and investigate virtual asset fraud. “For us in the EFCC, virtual asset fraud and investment scams are not hard nuts to crack,” he added.
At the Lagos session, Olukoyede, represented by the Chief of Staff and Lagos Zonal Director, C. E. Michael Nzekwe, described virtual assets as a dangerous tool in the hands of fraudsters and unscrupulous officials. He warned that criminals exploit the anonymity and borderless nature of blockchain platforms to commit fraud.
In Ibadan, where Olukoyede was represented by the Acting Zonal Director, Hauwa Ringin, he highlighted that investment fraud, like virtual asset fraud, is spreading rapidly across Africa.
Representing the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, the Deputy Governor of Economic Policy, Muhammad Abdullahi, revealed that Nigeria recorded over $56 billion in crypto transactions between July 2022 and June 2023, making it Africa’s digital transaction leader. However, he warned that this growth comes with significant risks. The CBN’s 2024 Financial Stability Report showed a 45% increase in financial fraud cases, with 70% of losses linked to digital platforms and unregulated virtual asset services. Over 30 Ponzi schemes exploiting crypto narratives have also been flagged by regulators.
Cardoso explained that these developments threaten consumer confidence and Nigeria’s reputation in the global financial system. He said the CBN and the Securities and Exchange Commission (SEC) had formed a joint committee, supported by the EFCC and the Nigerian Financial Intelligence Unit, to regulate virtual assets. He added that a National Virtual Asset Wallet is being considered to hold seized crypto assets.
He stressed the need for public education, especially among young people who are often targeted by fake investment schemes. “Technology-driven financial crimes are borderless, faceless, and fast-moving. Combating them requires strong institutions and coordinated action,” he said.
In Lagos, anti-fraud expert Kaina Garba explained that virtual assets such as cryptocurrencies and tokens are digital representations of value distinct from fiat money or traditional securities. He warned that criminals now exploit crypto for Ponzi schemes, fake coin offerings, phishing attacks, and laundering money through crypto mixers.
Garba noted that although cryptocurrencies were once unregulated in Nigeria, the new Investment and Securities Act 2025 now provides a legal framework. He said the EFCC has strengthened its cybercrime units, invested in digital forensics, and boosted local and international partnerships.
On behalf of the SEC, the Divisional Head of Legal and Enforcement, John Achile, reaffirmed the commission’s role under the new law. He said the SEC now regulates digital assets through incubation programmes and licensing. “We engage prospective exchanges or service providers to understand their operations and determine compliance before issuing licences,” Achile said.
In Ibadan, Professor Oludayo Tade, delivering a lecture titled “Understanding Virtual Asset and Investment Fraud,” urged Nigerians to be wary of deals that seem too good to be true. He stressed the importance of public awareness, noting that many victims of scams like CBEX might still fall for similar frauds in the future.
The Oyo State Sector Commander of the Federal Road Safety Corps, Rosemary Alo, represented by DCC OPS Olugbesan, added that joint efforts to monitor unregistered or cloned vehicle number plates have helped disrupt illicit financial flows and recover proceeds of crime.
ADEOLA KUNLE
