The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has revealed that some corrupt Nigerian politicians are increasingly using cryptocurrencies to conceal stolen public funds and evade detection by anti-graft agencies.
He made this disclosure on Thursday during an event commemorating Africa Anti-Corruption Day. The event, which was monitored took place simultaneously in Abuja, Lagos, and Ibadan. Virtual asset fraud is on the rise,” Olukoyede said. “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. Stolen funds and unexplained wealth are being warehoused in wallets, and payment for services are being done through this window.”
He warned that while virtual assets have revolutionised global financial transactions, they have also opened new avenues for money laundering and other financial crimes. “Technology is moving at a supersonic speed around the world,” he said. “The advent of virtual assets is a response to one of the qualities of money as a store of value like it is known in our elementary economies. However, as with every progressive innovation, fraudsters evolve ways of perverting their genuine purposes.”
Despite these challenges, Olukoyede assured the public that the EFCC is not powerless. “Virtual asset fraud and investment scams are not hard nuts to crack,” he said. “Proactive and broad-based training and intelligence are bringing fraudulent schemes to the fore.” Speaking in Lagos through his representative, Chief of Staff and Lagos Zonal Director, C. E. Michael Nzekwe, Olukoyede noted that virtual assets have become a dangerous tool in the hands of fraudsters and dishonest public officials. He stressed that the anonymity and borderless nature of blockchain-based platforms are being exploited across Africa.
In Ibadan, the EFCC chairman was represented by Hauwa Ringin, Acting Zonal Director of the Ibadan Directorate. She warned that investment scams, including those involving virtual assets, are spreading rapidly across the continent. Also speaking at the Abuja event, the Deputy Governor of Economic Policy at the Central Bank of Nigeria (CBN), Muhammad Abdullahi, representing CBN Governor Yemi Cardoso, revealed that Nigeria recorded over $56 billion in crypto-related transactions between July 2022 and June 2023.
“In Nigeria, over $56bn in crypto-related transactions were recorded between July 2022 and June 2023, making the country Africa’s digital transaction leader,” Abdullahi said. However, he cautioned that this growth has not come without consequences. According to him, the CBN’s 2024 Financial Stability Report shows a 45 percent rise in financial fraud cases, with 70 percent of losses tied to digital platforms and unregulated virtual asset services. He added, “Furthermore, over 30 Ponzi-style investment schemes exploiting digital currency narratives have been flagged by the SEC and other agencies.” Abdullahi warned that these developments pose major risks, including the loss of consumer confidence and damage to Nigeria’s financial integrity and global reputation.
To address these challenges, the CBN and the Securities and Exchange Commission (SEC) have established a joint committee to regulate the virtual asset space, with support from the EFCC and the Nigerian Financial Intelligence Unit. “We have intensified our regulatory and supervisory responses,” Abdullahi said. “We uncovered systemic weaknesses, including poor KYC practices and insufficient transaction monitoring.” He also revealed that the CBN is in discussions with the EFCC to develop a National Virtual Asset Wallet to store seized digital assets and emphasized the importance of public education, especially for young people.
In Lagos, anti-fraud expert Kaina Garba explained the nature of virtual assets and their misuse. “Criminals now exploit virtual assets to defraud unsuspecting investors,” he said. “Many disappear with people’s hard-earned money after marketing fictitious tokens or projects.” He noted that although cryptocurrencies were previously unregulated, the recently passed Investment and Securities Act 2025 now provides a legal framework. Garba said the EFCC has responded by strengthening its cybercrime units, investing in digital forensics, and expanding both local and international collaborations.
Representing the SEC, Divisional Head of Legal and Enforcement, John Achile, affirmed the commission’s commitment to investor protection under the 2025 Act. “The SEC has a dual responsibility: investor protection and market development,” he said. “With digital assets now legally recognised, we are regulating this space through structured incubation programmes and licensing procedures.” Achile also explained that the SEC had created a Digital Asset Division and adopted a two-stream incubation model—accelerated and managed—to scrutinise business models before issuing licences.
In Ibadan, Professor of Criminology Oludayo Tade delivered a lecture titled “Understanding Virtual Asset and Investment Fraud.” He cautioned Nigerians against get-rich-quick schemes, saying, “Anything too good to be true is a red flag. Even if you invest in a bank, the returns cannot be 50 percent in a week.” Tade added that fraudsters often use the images and reputations of credible individuals and organisations to legitimise their scams. “To prevent virtual fraud, we must increase awareness,” he said. “People who fell victim to CBEX are likely to fall again if awareness isn’t raised.”
In a goodwill message at the Ibadan event, Oyo State Sector Commander of the Federal Road Safety Corps, Rosemary Alo—represented by DCC OPS Olugbesan—highlighted the role of joint enforcement operations in disrupting illicit financial flows, especially through monitoring unregistered or fake vehicle number plates.
The event underscored the urgent need for stronger regulations, public awareness, and inter-agency collaboration in combating the growing threat of virtual asset-based fraud in Nigeria and across Africa.
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