Nigeria’s Economic and Financial Crimes Commission (EFCC) has issued a strong warning to stakeholders in the country’s digital asset industry, saying the sector must be regulated to shield investors and prevent criminal exploitation.
Speaking at a stakeholder meeting with the Blockchain Technology Association of Nigeria (SiBAN) in Abuja, EFCC Chairman Ola Olukoyede described cryptocurrency as “the new oil” for wealth creation but cautioned that its fast-growing ecosystem is vulnerable. He noted that politically exposed persons and foreign syndicates are increasingly exploiting crypto channels to launder illicit funds and scam unsuspecting Nigerians.
“There is a thin line between genuine crypto operators and fraudsters,” Olukoyede said, urging exchanges, platforms, and individuals in the space to become whistleblowers against criminal activity. He stressed that regulation would not only deter crime but also protect innovators and legitimate businesses from reputational damage.
SiBAN, the umbrella body for blockchain and crypto practitioners, supports the call for higher standards but highlighted the need for balance. Its president, Obinna Iwuno, explained that the group has introduced a code of ethics modeled on global best practice. It requires Know-Your-Customer (KYC) checks, compliance officers, and internal controls for member companies. “Our mission is to safeguard investors without stifling innovation,” Iwuno said.
The EFCC’s intervention comes at a time when Nigeria is grappling with both rising adoption and rising abuse of crypto. Over the past year, authorities have made arrests and deported foreign nationals accused of operating fraudulent crypto investment schemes. In 2021, the Central Bank of Nigeria (CBN) banned banks from servicing crypto businesses, a move that pushed most trading underground into peer-to-peer markets. By 2023, the CBN softened its stance, issuing clearer guidelines for exchanges and custodians.
Now, the EFCC’s call signals a new phase in Nigeria’s regulatory journey: recognition that crypto is not going away, but that oversight is important if it is to serve as a foundation for legitimate financial innovation.
For Africa’s largest economy, where millions rely on digital assets for remittances, savings, and inflation hedges, the message is clear: crypto may be the “new oil,” but it must be drilled responsibly.
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