In a stark warning delivered across multiple events commemorating Africa Anti‑Corruption Day, Economic and Financial Crimes Commission (EFCC) chairman Ola Olukoyede has sounded the alarm: Nigerian politicians are increasingly using cryptocurrencies to hide stolen public funds from anti‑graft agencies .
Delivering speeches in Ilorin, Gombe, Kaduna and other regional centres, Olukoyede revealed that corrupt “politically exposed persons” are converting ill‑gotten wealth into virtual assets stored in crypto wallets, effectively obscuring the trail for investigators.
He condemned the schemes as “perfected” and “dangerous,” emphasizing that both blockchain anonymity and cross‑border digital transactions have made detection increasingly difficult.
The EFCC boss highlighted the parallel rise in investment scams, notably the CBEX collapse, an illegal crypto Ponzi scheme that defrauded thousands of Nigerians. The commission has traced portions of the stolen funds to wallets spanning at least four countries, and despite freezing significant sums locally, full recovery remains elusive.
The Risks: Crypto as the New Escape Route
- Wallet stashing: Illicit funds are laundered into crypto wallets abroad; digital ledgers obscure ownership and flow
- Digital Ponzi schemes: CBEX and others exploit investor ignorance, promising high returns, then disappear—leaving victims drained.
- Yahoo‑Yahoo boys as conduits: “PEPs” reportedly collaborate with internet fraudsters to set up wallets for offshore transfers, buying luxury assets.
What Nigeria Is Doing
- Regulatory coordination: EFCC, Central Bank of Nigeria, Nigerian Financial Intelligence Unit (NFIU), and SEC are collaborating on oversight frameworks for virtual assets
- Asset‑tracking tech: International ties with Interpol aim to trace stolen crypto via a newly supported global “silver notice” system
- Public education: EFCC is hosting awareness events, warning citizens to verify investments, report suspicious transactions, and avoid high‑risk crypto schemes.
Why This Matters
Nigeria recorded over $56 billion in crypto transactions from July 2022 to June 2023, accompanied by a 45% spike in digital fraud, with virtual assets at the core of 70% of reported losses.
As crypto becomes integral to illicit finance, the EFCC has pledged unwavering vigilance and strengthened capabilities. Olukoyede warned that without public scrutiny and better digital financial literacy, anonymity and technological complexity will undercut the country’s fight against corruption.