Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), has uncovered deep-rooted lapses within the country’s financial system, revealing that commercial banks, fintech companies and microfinance institutions enabled the movement of over N180 billion in fraudulent and cryptocurrency-linked transactions without proper checks.
The Commission said investigations showed that N162 billion in cryptocurrency transactions and N18.7 billion in fraud proceeds were routed through financial institutions that failed to comply with Know Your Customer (KYC) and Customer Due Diligence (CDD) regulations, allowing large-scale scams that affected more than 900,000 Nigerians.
The disclosure was made on Wednesday in Abuja during a media briefing by the EFCC’s Director of Public Affairs and spokesman, Wilson Uwujaren, who outlined major breakthroughs as the Commission commenced its 2026 operational year.
According to Uwujaren, the funds were laundered through banks and digital platforms that neglected basic compliance standards, enabling fraud syndicates — many allegedly led by foreign nationals — to convert illicit proceeds into cryptocurrency and move them offshore.
One of the schemes uncovered involved a fake airline ticket discount platform targeting foreign travellers. Uwujaren explained that the syndicate designed payment modules to appear as official airline accounts, deceiving victims into believing they were making legitimate transactions.
“The payment module is designed in such a way that their victims would be convinced that the payment is actually made into the account of the airline. No sooner the payment is made than the passenger’s entire funds in his bank account are emptied,” he said.
Although only seven victims initially reported the crime, EFCC investigations later revealed that more than 700 people were affected, with losses totalling N651.1 million. The Commission has recovered N33.6 million, which has been returned to victims.
Uwujaren said the operation was allegedly masterminded by a foreign national who recruited young Nigerians, supplied them with laptops and specialised software, and exploited compromised bank accounts. Proceeds were reportedly converted to cryptocurrency and transferred through the Bybit exchange.
The EFCC also uncovered a far larger investment scam involving an unlicensed investment firm that lured Nigerians with bogus investment packages. Investigations showed that more than 900,000 victims were defrauded, generating N18.1 billion through nine affiliated companies offering fictitious investment opportunities.
Again, foreign nationals were identified as the alleged masterminds, with three Nigerian accomplices already arrested and charged to court. Uwujaren said efforts were ongoing to track down fleeing suspects.
A major concern raised by the Commission was the role of financial institutions. Uwujaren disclosed that a new-generation bank, alongside six fintech and microfinance banks, compromised standard procedures, enabling the laundering of fraud proceeds.
“A total sum of N18.7 billion had been moved through our financial system without due diligence of customers by the banks,” he said.
He described as particularly alarming the discovery that cryptocurrency transactions worth N162 billion passed through a single new-generation bank without adequate scrutiny. In another case, a bank allegedly allowed one customer to operate 960 accounts, all linked to fraudulent activities.
“It is worrisome that investigations by the Commission showed that cryptocurrency transactions to the tune of N162 billion passed through a new-generation bank without any due diligence,” Uwujaren added.
The EFCC warned that financial institutions found to be aiding or abetting fraud would face stiff sanctions, including suspension, investigation and possible prosecution. Uwujaren said negligence in monitoring suspicious transactions would no longer be tolerated, urging regulators to enforce full compliance across the financial sector to curb economic losses.
