Nigeria’s top anti-corruption official has sounded the alarm over a new frontier in financial crime, revealing that corrupt politicians are now funnelling illicit funds into cryptocurrency wallets to evade detection.
Speaking on Africa Anti-Corruption Day, the Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, disclosed that the agency is uncovering an increasing number of public officials using digital currencies to conceal the proceeds of corruption and carry out illicit transactions beyond the reach of traditional oversight mechanisms.
“Virtual asset fraud is on the rise,” Olukoyede said at events held simultaneously in Abuja, Lagos and Ibadan. “Our findings show that fraudulent politicians are perfecting schemes and hiding their loot in cryptocurrencies to beat investigative scrutiny.”
The EFCC boss warned that although cryptocurrencies were developed as a legitimate innovation in financial technology, they have been rapidly co-opted by criminal actors for money laundering, tax evasion and embezzlement. “Stolen funds and unexplained wealth are being warehoused in digital wallets, and payments for services are being made through these channels,” he said.
Despite the challenge, Olukoyede insisted the EFCC was not helpless. The commission, he said, had strengthened its cybercrime units and invested in intelligence sharing and digital forensics. “Virtual asset fraud and investment scams are not hard nuts to crack,” he noted.
A fast-moving threat
The rise in crypto-related crime is part of a broader pattern of digital financial fraud sweeping across Nigeria and the continent. Muhammad Abdullahi, Deputy Governor of Economic Policy at the Central Bank of Nigeria (CBN), revealed that over $56 billion in crypto transactions were recorded in Nigeria between July 2022 and June 2023, making the country Africa’s digital transaction leader—but not without consequences.
According to the CBN’s 2024 Financial Stability Report, financial fraud cases have surged by 45 per cent, with 70 per cent of losses linked to digital platforms and unregulated virtual asset services. The Securities and Exchange Commission (SEC) has flagged over 30 Ponzi-style investment schemes exploiting cryptocurrency narratives.
“These developments pose major risks, including loss of consumer confidence, weakening of financial integrity, and reputational damage for Nigeria in the global financial system,” Abdullahi warned.
He added that the CBN and SEC had formed a joint committee—working with the EFCC and the Nigerian Financial Intelligence Unit—to regulate virtual assets more robustly. One key initiative under consideration is the creation of a National Virtual Asset Wallet to hold confiscated digital assets.
The apex bank has also intensified scrutiny of fintech partnerships and digital accounts, uncovering systemic lapses such as weak Know-Your-Customer (KYC) protocols and inadequate transaction monitoring.
‘Too good to be true’: The fraudster’s promise
Across all three cities hosting the commemorative events, experts warned that financial illiteracy and desperation were fuelling a new wave of scams—from fake initial coin offerings to phishing attacks and crypto mixers used for laundering illicit funds.
In Lagos, anti-fraud expert Kaina Garba said: “Criminals now exploit virtual assets to defraud unsuspecting investors. Many disappear with people’s hard-earned money after marketing fictitious tokens or projects.”
He noted that although Nigeria only recently enacted a legal framework for digital assets under the Investment and Securities Act 2025, regulatory agencies like the SEC had begun licensing and incubating compliant platforms. “We do not just issue licences. We engage prospective exchanges or service providers to understand their operations and determine compliance,” said the SEC’s Divisional Head of Legal and Enforcement, John Achile.
In Ibadan, criminology professor Oludayo Tade issued a stark warning about the psychological tricks used by fraudsters. “Anything too good to be true is a red flag,” he told attendees. “If someone promises 50% returns in a week, ask yourself—how is that even possible in a system where banks offer a fraction of that in a year?”
He added that many schemes rely on co-opting the images of celebrities and reputable institutions to appear credible. “The real problem is awareness. Those who lost money to the CBEX scam are likely to fall for the next one if we don’t ramp up public education.”
No safe haven
The EFCC’s revelations come amid growing international concern about the use of virtual currencies to finance terrorism, trafficking, and corruption—especially in jurisdictions with weak oversight. Nigeria, which has historically struggled to prosecute high-profile corruption cases, now faces the added burden of regulating a rapidly evolving and opaque financial space.
Representing the Federal Road Safety Corps in Ibadan, Rosemary Alo of the Oyo State Command noted that even vehicle registration enforcement has become part of the anti-fraud ecosystem. “Our efforts in disrupting the use of cloned or fake number plates have played a role in combating illicit financial flows,” she said.
For EFCC chair Olukoyede, the message is clear: technology may be evolving at “supersonic speed,” but Nigeria’s institutions must evolve just as quickly to ensure the digital economy doesn’t become a new hiding place for old crimes.
“The future of anti-corruption work lies in understanding and disrupting virtual crime networks,” he said. “We’re ready for that challenge.”
