The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has raised concerns over a disturbing trend of corrupt Nigerian politicians hiding illicit wealth in cryptocurrencies to evade detection. Speaking at events commemorating the Africa Anti-Corruption Day held simultaneously in Abuja, Lagos, and Ibadan, Olukoyede revealed that virtual assets are now being used to warehouse stolen public funds and conduct illicit transactions beyond the reach of traditional financial oversight. He warned that the anonymity of blockchain technology is enabling dishonest officials to launder money more discreetly.
Olukoyede emphasized that while cryptocurrencies represent innovation in global finance, they are now being twisted for fraudulent purposes. “Fraudulent politicians are already perfecting schemes and hiding their loot in cryptocurrencies to beat the investigative blackness of anti-corruption agencies,” he stated. The EFCC boss, however, assured that the agency is not helpless in tackling these evolving threats, citing proactive training and improved intelligence-sharing as effective tools in tracking virtual asset fraud. EFCC officials at the various events further described cryptocurrencies as a growing threat used by both cybercriminals and dishonest public officials.
Representatives from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) also spoke at the events, highlighting the risks associated with Nigeria’s expanding digital asset ecosystem. CBN Deputy Governor Muhammad Abdullahi revealed that Nigeria recorded over $56 billion in crypto-related transactions between July 2022 and June 2023, making the country Africa’s digital transaction leader. However, this rapid growth has come with increased financial fraud, with the CBN’s 2024 Financial Stability Report indicating a 45% rise in fraud cases—70% of which were linked to digital platforms and unregulated virtual asset services.
Experts and stakeholders called for more public education and stronger regulations to combat the rise of virtual asset and investment fraud. Criminologist Professor Oludayo Tade, speaking in Ibadan, stressed that many Nigerians still fall victim to scams promising unrealistic returns. “If it sounds too good to be true, it probably is,” he warned. Meanwhile, SEC officials said regulatory frameworks under the new Investment and Securities Act 2025 are being implemented to license digital asset providers through incubation streams that ensure compliance. The EFCC, CBN, SEC, and other agencies are now collaborating on tighter oversight, including plans to launch a National Virtual Asset Wallet for seized crypto assets.
