By Jannamike Luminous
The Nigerian financial system has been widely compromised, according to the Economic and Financial Crimes Commission (EFCC). Commercial banks, fintech firms, and microfinance banks enabled the transfer of N162 billion in cryptocurrency transactions and N18.7 billion in fraud proceeds without conducting due diligence, enabling scams that impacted over 900,000 Nigerians.
According to the Commission, the money was laundered through financial institutions that disregarded Customer Due Diligence (CDD) and Know Your Customer (KYC) regulations, enabling fraudsters—many of whom are foreign nationals—to transform illegal proceeds into digital assets and transfer them to offshore locations.
Wilson Uwujaren, the EFCC’s Commander and Director of Public Affairs, made the revelations yesterday in Abuja during a media conference. He detailed significant investigative advancements the Commission has made as it started the 2026 fiscal year.
According to Uwujaren, the first scheme involved a gang that used phony payment platforms made to seem like real airline accounts in order to deceive naïve overseas travelers by employing a phony airline ticket discount system.
“The payment module is made in a way that makes their victims believe that the money has been transferred to the airline’s account.” The passenger’s whole bank account gets depleted as soon as the payment is made, according to Uwujaren.
He clarified that although just seven victims at first reported the fraud, further research showed that over 700 individuals had been impacted, with N651.1 million in losses overall.
He claims that N33.6 million has been recovered and given to victims by the Commission thus far.
According to Uwujaren, investigations revealed that a foreign national was behind the scheme, recruiting young Nigerians, giving them laptops and specialized software, and using compromised accounts to carry out the fraud. The proceeds were then converted into cryptocurrency and transferred via Bybit.
Additionally, the EFCC discovered a second, far bigger investment scam connected to an investment company that tricked Nigerians into purchasing fraudulent investment packages.
He claimed that the operation robbed over 900,000 people and produced a total of N18.1 billion through nine firms that offered different investment options.
Uwujaren stated that three Nigerian collaborators had been detained and charged in court, and that attempts were still underway to capture the escaping suspects. He added that investigations once again indicated foreign nationals as the masterminds.
The role of financial institutions was one of the Commission’s main concerns. Uwujaren revealed that six fintech and microfinance banks, along with a new-generation bank, had violated regular banking protocols to allow the laundering of fraud proceeds.
He stated, “A total of N18.7 billion had been moved through our financial system without the banks’ due diligence of customers.”
The fact that N162 billion worth of bitcoin transactions went via a new-generation bank without due diligence and that another bank permitted a single customer to manage 960 accounts used exclusively for fraudulent activities were both concerning, he added.
“It is concerning that the Commission’s investigations revealed that N162 billion worth of cryptocurrency transactions went through a new generation bank without any due diligence,” Uwujaren stated.
The EFCC warned that organizations found to be assisting or abetting fraud would be subject to sanctions, an investigation, and potential prosecution, and it urged regulatory bodies to demand complete compliance in the financial industry.
According to Uwujaren, “Deposit Money Banks, Fintechs, and Micro Finance Banks found to be aiding and abetting fraudsters should be suspended and referred to the EFCC for thorough investigation and possibly prosecution.”
He emphasized that financial institutions must fortify their internal mechanisms to prevent leaks that continue to drain the country’s economy and added that carelessness and a failure to keep an eye on suspicious and structured transactions would no longer be accepted.
