Looted funds : EFCC uncovers new tactics deployed by Nigerian politicians

The Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has raised fresh concerns over the evolving methods used by corrupt politicians to conceal stolen public funds—this time, through the murky world of cryptocurrencies.

Speaking during an event marking the African Union Anti-Corruption Day in Ibadan on Thursday, Olukoyede, represented by the Acting Zonal Director of the EFCC’s Ibadan office, Hajiya Hauwa Ringim, sounded the alarm on the increasing use of virtual assets as a cover for illicit wealth.

“Virtual assets are becoming the preferred channel for hiding illicit wealth,” he said, warning that although digital currencies are not inherently illegal, they pose significant risks when used fraudulently.

Olukoyede expressed deep worry over the growing trend, noting that Africa continues to suffer from illicit financial flows which undermine economic development. He identified money laundering and digital fraud as persistent threats.

According to him, the EFCC has tracked a surge in the number of politicians turning to cryptocurrency wallets to store unexplained wealth and facilitate questionable investment schemes.

“The commission’s efforts resulted in breakthroughs like the CBEX investment scam investigation as well as prosecution,” he revealed, pointing to progress made through intelligence gathering and staff training.

He also blamed many of the ongoing scams on public ignorance and investor recklessness.

“Most scams succeeded due to lack of due diligence and delayed reporting of suspicious transactions to relevant authorities,” he said.

Ponzi schemes, he added, continue to thrive by exploiting desperate individuals lured by flashy digital promises.

Olukoyede stressed the need for mass sensitisation and coordinated responses from anti-graft agencies and financial regulators.

“Understanding digital fraud is crucial,” he warned. “Citizens must acquire knowledge and report shady schemes before they escalate into national scandals.”

Supporting the call for vigilance, Prof. Oludayo Tade, a criminologist from the University of Ibadan, urged Nigerians to remain skeptical of investment offers that appear too good to be true.

“Fifty per cent profit within a week are clear signs of deceit,” he warned. “Fraudsters exploit the image of celebrities as well as influencers to build trust and deceive unsuspecting investors across media platforms.”

He said repeated victimisation often stems from ignorance and advised government agencies to intensify public awareness campaigns.

“Fraud prevention is more effective than belated enforcement actions,” he added, calling for stronger funding for investigations and tougher penalties for offenders.

The forum brought together government officials, security operatives, civil society organisations, students, and youth representatives, including the Special Adviser to the Oyo State Governor on Security, retired Commissioner of Police Fatai Owoseni.