The Economic and Financial Crimes Commission (EFCC) has uncovered a suspicious transaction in which public funds were allegedly moved from a local government account to a private company before being transferred into cryptocurrency wallets.
EFCC Chairman, Ola Olukoyede, disclosed this on Monday in Abuja while addressing media executives and journalists, saying the commission could not ignore suspicious movements of public funds.
Olukoyede, however, declined to identify the local government, private company or state involved in the transaction.
According to him, the commission’s Fraud Risk Assessment and Control Department detected the transactions and immediately intervened by freezing the account for 72 hours to determine the destination and purpose of the funds.
The EFCC chairman defended the decision, saying law enforcement agencies must act before suspicious transactions are completed rather than wait until public funds have already been stolen.
“When we see money moving suspiciously, we move in and freeze it in the interim. I know some of you are calling for my head,” Olukoyede said.
“The account was frozen for 72 hours. Okay, come and show where this money is going? Why are you moving money? 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.
“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.”
EFCC: Stop Waiting Until Funds Are Stolen
Olukoyede said the development highlighted the need for a fundamental shift in the country’s approach to fighting financial crimes.
“Why must we be waiting for money to be stolen? Why can’t we change the narrative? And that’s the main thing we need to bring to the office,” he said.
His disclosure comes amid renewed public debate over the EFCC’s decision earlier in August to freeze an account belonging to the Osun State Government, days before the August 15 governorship election.
However, Olukoyede did not link the transaction he disclosed to Osun State or any other specific state.
Public Officials Now Using Crypto to Hide Stolen Funds
The EFCC chairman also warned that cybercrime had evolved beyond the traditional “Yahoo Yahoo” phenomenon, alleging that some young Nigerians were being used as fronts by public officials to move illicit funds through cryptocurrency wallets.
“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.
“The money moves abroad. They buy a house anywhere in the world, buy luxury items. Those are the recent trends.”
Olukoyede said the commission had developed the capacity to trace cryptocurrency wallets, particularly those connected to virtual asset platforms registered in Nigeria.
He disclosed that about 40 virtual asset platforms had been licensed as part of measures to strengthen regulatory oversight of the sector.
“Now we also have the capacity to trace cryptocurrency wallets now, at least with those that are registered in Nigeria, and we are doing that,” he said.
EFCC Recovers Crypto Assets From CBEX Fraud
The EFCC boss also disclosed that the commission had recovered virtual assets linked to the CBEX fraud.
However, he identified the management and custody of confiscated cryptocurrency as a major challenge, saying the absence of a centralised system had previously raised accountability concerns.
“When you recover virtual assets, where do you put them? No accountability. That’s why we can’t continue like this,” he said.
Olukoyede said the Federal Government had subsequently approved the establishment of a national confiscation wallet for virtual assets recovered by law enforcement agencies.
“Today, now we have a national confiscation wallet. So if I confiscate virtual assets now, it’s a national wallet that we put into those,” he said.
Olukoyede Warns of New Cybercrime Trends
The EFCC chairman urged Nigerians and institutions to understand that cybercrime had become increasingly sophisticated, warning that cryptocurrency was now being exploited to conceal and move illicit funds across borders.
“When we are talking about cybercrime, please cooperate with us, understand the scope. Not just Yahoo. Some of the people you are calling Yahoo, see your young children; they are stealing on behalf of London, on behalf of public servants,” he said.
EFCC Recovers N288.1bn in Tax Revenue
Highlighting the commission’s activities over the last three years, Olukoyede said the EFCC’s anti-corruption operations had also contributed significantly to revenue mobilisation.
According to him, the commission recovered approximately N288.1 billion in federal and state tax revenue during the period under review.
He said the figure comprised about N173.2 billion in federal tax recoveries and N114.9 billion recovered through State Internal Revenue Services.
Over 40 EFCC Personnel Dismissed
Olukoyede further disclosed that more than 40 EFCC personnel had been dismissed over alleged corruption and financial malpractice in the past two-and-a-half to three years.
He said some of the dismissed officials were already facing prosecution, while case files involving others were being prepared for prosecution.
The EFCC chairman maintained that the commission would continue to strengthen its preventive and investigative mechanisms to detect suspicious financial activities before illicit funds could be moved beyond the reach of law enforcement.
