- Nigeria’s anti-corruption chief has issued a strong warning against crypto-related investment scams
- The Economic and Financial Crimes Commission has launched an awareness campaign as digital fraud cases have surged nationwide
- Victims have increasingly failed to verify platforms before committing funds to crypto ventures
In a bid to curb rising cryptocurrency fraud, Nigeria’s Economic and Financial Crimes Commission (EFCC) has cautioned the public against carelessness in crypto investments. The agency’s chairman, Ola Olukoyede, said in an official notice that too many victims are failing to conduct due diligence before sending funds to online “investment” schemes, many of which use crypto assets to evade detection. With the Nigerian digital economy growing rapidly, scammers are leveraging blockchain platforms to exploit investors seeking fast returns, exploiting a lack of financial literacy and the desire for quick wealth.
Nigeria Targeted by Crypto Scammers
The EFCC’s warning comes as crypto-related fraud plagues Nigeria, one of the world’s fastest-growing crypto markets, with fraudsters often luring victims with promises of high-yield returns through bogus digital investment platforms. The promise of quick riches and a vastly improved life is obviously tempting to many, with scammers playing on a lack of financial literacy among the nation’s lower classes.
Speaking during a recent public event in Ibadan, Olukoyede emphasized that negligence is enabling criminal networks:
Investment fraud, like virtual assets fraud, is spreading like wildfire across Africa…fraudsters are exploiting vulnerabilities of desperate investors to defraud them through various dishonest schemes. Every exploitation of investors in any guise is considered a fraudulent act. Ponzi schemes rank as one of the most pervasive of such acts.
While traditional Ponzi schemes are still active, many now take the form of crypto-based projects, using Bitcoin, Ethereum, or stablecoins to launder money and avoid banking oversight. These schemes often rely on social media influencers or fake endorsements to win trust. The EFCC has opened multiple investigations into such cases, but recovering assets remains a major challenge due to the anonymous nature of blockchain transactions.
Rising Losses and Limited Recourse
Crucially, and worryingly, Olukoyede noted that it wasn’t just scammers that were breaking the rules when it comes to using crypto for illicit means:
Our findings showed that fraudulent politicians are already perfecting schemes and hiding their loot in cryptocurrencies to beat the investigative dragnets of anti-corruption agencies. Stolen funds and unexplained wealth are being warehoused in wallets and payments for services are being done through this window.
Such revelations will disturb those who believed that politicians were above such actions, and show just how tempting the riches are that are on offer. Nigeria’s tech-savvy youth population has embraced cryptocurrency as a hedge against inflation and financial instability, but this enthusiasm has also created a fertile ground for deception.
The EFCC plans to launch new digital literacy campaigns aimed at helping users identify red flags in crypto investment offers and stay safe in the decentralized economy. The Commission is urging Nigerians to consult only registered financial advisors when considering investments and to avoid schemes that promise unrealistic returns.
