By Atoyebi Nike
The Economic and Financial Crimes Commission (EFCC) has cautioned that Nigeria’s financial system could be exposed to widespread abuse if cryptocurrency activities remain unregulated.
Executive Chairman of the EFCC, Ola Olukoyede, issued the warning in Abuja on Wednesday through his Chief of Staff, Michael Nzekwe, during a courtesy visit by the leadership of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), led by President Obinna Iwuno.
Olukoyede described cryptocurrency as both a driver of global innovation and wealth creation, but also a potential enabler of money laundering, terrorism financing, and fraud if left unchecked.
“Crypto is the new oil. There’s so much money in it. But the ecosystem needs to be properly regulated. Without that regulation, even genuine actors will run into problems. Sadly, we are seeing politically exposed persons and even so-called legitimate actors exploiting crypto for laundering money,” he said.
The EFCC chairman urged blockchain stakeholders to prioritise investor education, compliance, and whistleblowing to curb abuse within the sector. “You can collaborate with us to stop money laundering. You can blow the whistle. The more enlightenment and training we provide, the stronger our economy becomes,” he added.
Responding, SiBAN President, Obinna Iwuno, said the association has developed a code of ethics aligned with international standards to demonstrate its readiness for regulation.
“We have been calling for regulation since 2018 because without it, Nigeria risks losing out to capital flight. We have mandated KYC compliance and required operators to have compliance officers to ensure accountability,” he noted.
Iwuno stressed, however, that regulation must not stifle innovation in Nigeria’s fast-growing digital assets market. “Nigeria has the largest youth population in Africa, and they are very active in this space. But without proper regulation, we stand at risk of money laundering, terrorism financing, threats to national security, and proliferation financing,” he said.
Both the EFCC and SiBAN agreed on the need for stronger collaboration to balance innovation with security in the nation’s cryptocurrency ecosystem.
