Fresh disclosures from Nigeria's Economic and Financial Crimes Commission (EFCC) suggest that serious compliance failures across banks, fintechs, and microfinance institutions helped fraud and large crypto transactions slip through with far too little scrutiny.
At a media briefing in Abuja to kick off its 2026 operations, EFCC Director of Public Affairs Wilson Uwujaren said regulated institutions allowed about ₦162 billion (~$114 million) in cryptocurrency transactions and ₦18.7 billion (~$13 million) in fraud proceeds to move through their platforms without proper customer due diligence.
What the EFCC is stressing is that crypto itself wasn’t the core problem. The bigger issue was how easily bad actors were able to access crypto and move funds through formal financial channels that failed to apply basic Know Your Customer (KYC) and monitoring rules.
Louis Eriakha
In one case, investigators discovered that a single customer was allowed to operate 960 separate bank accounts, all allegedly tied to fraudulent activity. In another, a new-generation bank processed ₦162 billion in crypto-related flows without flagging or questioning the transactions.
How the scams worked
One of the cases outlined by the EFCC involved a fake airline ticket discount scheme aimed at foreign travelers. The fraudsters created payment interfaces designed to look like legitimate airline booking platforms, tricking victims into sending money.
At first, only seven victims came forward. But as investigators dug deeper, the scale became clearer. More than 700 victims were eventually identified, with total losses reaching ₦651.1 million (~$459,000). So far, the EFCC says it has recovered ₦33.6 million (~$24,000) and returned it to victims.
According to Uwujaren, the scheme was run by a foreign national who recruited young Nigerians, provided them with laptops and specialized software, and used compromised local bank accounts to move funds. The proceeds were then converted into cryptocurrency on Bybit, helping obscure the trail and move money out of reach.
A second and much larger case involved a fake investment operation that promised high returns through multiple shell companies. Uwujaren said more than 900,000 Nigerians were affected, with ₦18.1 billion (~$12.7 million) raised across nine entities offering bogus investment packages. Three Nigerian accomplices have been arrested and charged, but the alleged foreign masterminds behind the scheme are still at large.
David Adubiina
The deeper problem is compliance, not just crime
What seems to worry the EFCC most isn't just the size of the fraud, but how deeply it was enabled by gaps inside regulated institutions. The commission warned that institutions found to be aiding, abetting, or negligently enabling fraud could face sanctions, deeper investigations, and possible prosecution. Uwujaren also called on regulators to enforce stricter compliance, adding that negligence would no longer be tolerated.
The disclosures land at a sensitive moment for Nigeria’s financial system. Digital finance and crypto adoption continue to grow, but these cases show how weak oversight inside regulated institutions can turn innovation into a liability.
The bigger takeaway is uncomfortable: fraud at this scale doesn’t happen without systemic blind spots. When banks and fintechs fail at basic safeguards, they don’t just process transactions. They become part of the infrastructure that makes large-scale fraud possible.
As Uwujaren put it, allowing these leakages to persist is “bleeding the nation’s economy.” The message from the EFCC is that plugging those leaks now sits squarely with the institutions that are supposed to be the gatekeepers.
