The Economic and Financial Crimes Commission disclosed how public funds were moved from a local government account to a private company before being transferred into cryptocurrency wallets.
The EFCC Chairman, Ola Olukoyede, revealed the development while addressing media executives and journalists in Abuja, stressing that the commission could not ignore the suspicious movement of public funds. Olukoyede, however, did not disclose the local government, company, or state involved in the transaction. He explained that the commission’s Fraud Risk Assessment and Control Department had detected the suspicious transactions and intervened by freezing the funds for 72 hours to establish their destination and purpose.
Olukoyede expressed his displeasure over individuals calling for his head as a result of the agency’s actions. He questioned whether transferring funds from a local government account to a private firm and subsequently into cryptocurrency wallets represented a legitimate approach to public infrastructure or power generation. He added that ignoring such transactions would render his role in office unnecessary, emphasizing that law enforcement agencies must shift from waiting for public funds to be stolen to actively preventing suspicious transactions from completing.
The disclosure comes against the backdrop of an outcry following the EFCC’s decision to freeze an account belonging to the Osun State Government shortly before its governorship election, though Olukoyede did not link the cited transaction to Osun State or any other specific state.
The EFCC boss noted that cybercrime had evolved beyond traditional internet fraud, revealing that public officials were using young people as fronts to move allegedly stolen funds through cryptocurrency wallets. He stated that many directors under investigation no longer held traceable tangible assets because they diverted money through students and young individuals who opened global cryptocurrency wallets to plunder the funds within 24 hours. Once transferred abroad, these funds were used to purchase real estate and luxury items.
Olukoyede announced that the commission had developed the capacity to trace cryptocurrency wallets, particularly those registered with licensed virtual asset platforms in Nigeria, which currently number around 40 following recent regulatory measures. Reeling out the commission’s achievements, he noted that the agency had recovered virtual assets linked to the CBEX fraud, but highlighted that the management of confiscated cryptocurrency had previously created accountability concerns. Consequently, the Federal Government approved the establishment of a national confiscation wallet where virtual assets recovered by law enforcement agencies would be kept.
He warned that the increasing use of cryptocurrency to move illicit funds required stronger technological capacity among financial and law enforcement institutions, urging the public to recognize that many young individuals were stealing on behalf of public servants.
Additionally, Olukoyede reported that the commission’s anti-corruption activities had contributed significantly to revenue mobilization, with federal and state tax recoveries amounting to approximately N288.1bn. This total comprised about N173.2bn in federal tax recoveries and N114.9bn attributed to State Internal Revenue Services. He also disclosed that more than 40 personnel were dismissed for alleged corruption and financial malpractice over the past three years, with some facing prosecution and others awaiting trial.
