The Economic and Financial Crimes Commission (EFCC) has revealed the methods used to siphon public funds from local government accounts, detailing a process where money is funneled through private companies before being converted into cryptocurrency.
EFCC Chairman, Ola Olukoyede, disclosed this on Monday while briefing media executives in Abuja, emphasizing that the commission could not overlook such suspicious financial activities. While he did not identify the specific local government, company, or state involved, he confirmed that the agency’s Fraud Risk Assessment and Control Department had flagged the transactions, leading to a 72-hour freeze to investigate their origin and destination.
Addressing criticism regarding his aggressive stance, Olukoyede defended the agency’s actions. “When we see money moving suspiciously, we move in and freeze it in the interim,” he stated. “I know some of you are calling for my head. The account was frozen for 72 hours. Okay, come and show where this money is going? We saw money being moved from the local government account to a company. Apart from that phase, we discovered that the money has gone into cryptocurrency wallets.”
He questioned the legitimacy of such transfers, adding, “Is that the road to build? Is that the power to generate cryptocurrency wallets for your people? Are you asking me to close my eyes and not do something like that? Then you don’t need me in this office.”
The EFCC chairman argued that this trend necessitates a shift in strategy for law enforcement—moving from reactive investigations to proactive prevention. “Why must we be waiting for money to be stolen? Why can’t we change the narrative?” he asked.
Though the disclosure follows recent public outcry over the EFCC freezing an Osun State Government account shortly before the August 15 governorship election, Olukoyede did not link the specific transaction he discussed to that state.
He further noted that cybercrime has evolved beyond traditional “Yahoo Yahoo” scams. Public officials are now allegedly using young people as fronts to launder stolen funds. “We have gotten to a stage in Nigeria now that public officials steal money and they put it in cryptocurrency wallets,” he said. “Most of the directors we are investigating now, you can’t trace tangible assets to them. They steal this money, give it to students, give it to young people. They open cryptocurrency wallets all over the world. They plunder the money there within 24 hours.”
To combat this, the EFCC has bolstered its capacity to track cryptocurrency wallets, particularly those on platforms registered in Nigeria. Olukoyede noted that approximately 40 virtual asset platforms have been licensed under new regulatory measures.
The commission also addressed the challenge of managing recovered virtual assets. Olukoyede revealed that the Federal Government has approved the creation of a “national confiscation wallet” to ensure accountability for seized digital assets.
Beyond digital crime, Olukoyede highlighted the commission’s broader achievements, including the recovery of approximately N288.1bn in federal and state tax revenue. He also emphasized internal accountability, noting that over 40 EFCC personnel have been dismissed for corruption and financial malpractice over the last three years, with many currently facing prosecution.
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