The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has issued a warning to Nigerians about the increasing use of cryptocurrency and digital assets by politicians and fraudsters to conceal stolen wealth and perpetrate high-level investment scams.
Speaking during a public lecture at the EFCC headquarters in Abuja to mark the 2025 African Union Anti-Corruption Day, themed “Understanding Virtual Asset and Investment Fraud,” Olukoyede revealed that the rise in crypto-related fraud in Nigeria is being fueled by rogue actors, including public officials, seeking to shield ill-gotten wealth from the investigative radar of anti-corruption agencies.
He disclosed that the Commission has uncovered alarming evidence that corrupt politicians are now using cryptocurrencies to stash stolen funds, settle illicit transactions, and facilitate fraudulent investment schemes designed to fleece unsuspecting citizens. “Our findings showed that fraudulent politicians are already perfecting schemes and hiding their loot in cryptocurrencies to beat the investigative dragnets of anti-corruption agencies. Stolen funds and unexplained wealth are being warehoused in crypto wallets,” he said.
Olukoyede stressed that while virtual assets were not inherently criminal, their misuse by criminals poses a serious risk to Nigeria’s financial system and investor trust. Drawing lessons from the infamous CBEX scam that left countless Nigerians bankrupt, the EFCC boss blamed investor negligence and lack of due diligence for enabling such frauds. “No investment scam can succeed without the negligence of investors,” he warned.
The EFCC chairman also pointed out that most victims fail to report suspicious activities until after being scammed, allowing fraudsters to operate with impunity. He emphasized that investment scams, particularly Ponzi schemes cloaked in digital innovation, are spreading like wildfire across Africa.
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Reaffirming the EFCC’s readiness to tackle virtual asset crimes, Olukoyede stated that the agency has made significant breakthroughs in cracking high-profile fraud cases involving digital currencies, thanks to robust intelligence gathering, inter-agency collaboration, and advanced cybercrime detection training.
Delivering a message on behalf of Central Bank Governor Olayemi Cardoso, Deputy Governor of Economic Policy, Muhammad Sani Abdullahi, highlighted the rapid adoption of digital financial services in Nigeria and its dual-edge impact. He noted that between July 2022 and June 2023, Nigeria recorded over $56 billion in crypto-related transactions, the highest in Africa, but warned that this digital boom also triggered a 45% surge in financial fraud cases, with 70% linked to unregulated platforms.
The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, echoed these concerns, lamenting that virtual asset fraud and investment scams are eroding market confidence and stalling sustainable development. He emphasized that the SEC is intensifying efforts to educate investors, enhance regulation of digital assets, and collaborate across borders to track illicit financial flows.
Malam Lanre Issa-Onilu, Director-General of the National Orientation Agency (NOA), commended the EFCC’s work and called for nationwide reorientation against the get-rich-quick mentality. He described financial fraud as a national tragedy, warning that every naira stolen translates to destroyed livelihoods, shattered dreams, and deepening public distrust.
The Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji, also emphasized the need for stronger oversight in the corporate and financial sectors to combat digital-era fraud. He stressed that while virtual assets offer economic opportunity, they also pose new threats that demand proactive regulation and inter-agency synergy.
In a technical presentation, ACE II Dein Whyte, Head of the EFCC’s Cybercrime Section, demystified the world of digital assets and explained the differences between cryptocurrencies, tokens, and fiat currency. He cautioned the public to be vigilant about red flags in investment offers and urged them to report suspicious schemes before it’s too late.
The event featured interactive sessions and was simultaneously replicated across EFCC’s zonal directorates nationwide, as part of a broader campaign to expose the dark underbelly of virtual asset fraud and protect the public from increasingly sophisticated digital scams.
With virtual assets now sitting at the intersection of innovation and criminality, Nigerian authorities are stepping up efforts to ensure the country’s financial future isn’t hijacked by cybercriminals and corrupt elites hiding behind the anonymity of blockchain technology.
