The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has urged Nigerians to exercise caution when investing their money, warning that negligence by investors often fuels the success of fraudulent investment schemes.
Speaking at a public lecture to mark the 2025 African Union Anti-Corruption Day, themed “Understanding Virtual Asset and Investment Fraud,” Olukoyede highlighted the growing threat of digital investment scams and virtual asset misuse across Nigeria and Africa.
“We are all aware of the hues and cries of many investors in CBEX that lost their funds to the shenanigans of the operators. This unfortunate situation is preventable,” Olukoyede stated.
He noted that the CBEX case revealed how public negligence, including failure to conduct due diligence and report suspicious activities, inadvertently aids fraudsters.
“No investment scam can succeed without the negligence of investors,” he stressed.
Olukoyede described virtual asset and investment fraud as rapidly spreading “like wildfire” across Africa, driven by Ponzi schemes and opportunistic actors exploiting desperate investors.
He also raised alarms over rogue politicians using cryptocurrency to conceal illicit wealth.
“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,” he revealed.
While acknowledging that virtual assets themselves are not inherently criminal, Olukoyede warned that their misuse by bad actors is undermining public trust and market stability.
“Virtual assets are not fundamentally criminal. It is when they are wrongfully or fraudulently used that they become criminal,” he said.
He affirmed the EFCC’s preparedness to combat these emerging threats through intelligence gathering, specialized training, and strategic enforcement actions, citing the agency’s successful crackdown on the CBEX scam as an example.
Also speaking at the event, Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, represented by Muhammad Sani Abdullahi, noted the exponential rise in digital financial services, including cryptocurrencies and tokenized investments.
He revealed that Nigeria recorded over $56 billion in crypto-related transactions between July 2022 and June 2023, making it Africa’s leader in digital transactions.
However, he also warned of the risks, citing a 45% surge in financial fraud cases, with 70% of losses linked to digital channels.
“Over 30 Ponzi-style investment schemes exploiting digital currency narratives have been flagged,” Abdullahi said.
Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, emphasized the dangers of virtual asset fraud in undermining market integrity and investor confidence.
“These threats divert resources meant for sustainable development and erode trust,” Agama said, reaffirming SEC’s commitment to investor education, enhanced regulation, and global collaboration.
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NOA Director-General, Malam Lanre Issa-Onilu, commended the EFCC’s efforts, noting the damaging socio-economic effects of financial scams.
“Every Naira lost to fraud causes far-reaching effects. It is about a child pulled out of school, a livelihood ruined, and an enterprise destroyed,” he said.
He added that the NOA’s nationwide campaign is helping dissuade youth from the “get-rich-quick” mentality.
Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji, acknowledged that while virtual assets offer economic opportunities, they also pose challenges related to financial manipulation and money laundering.
He said the CAC was deepening collaboration with regulators like the SEC to enhance oversight.
The keynote lecture was delivered by Dein Whyte, Head of EFCC’s Cybercrime Section, who defined virtual assets as digital representations of value, including cryptocurrencies and non-tangible tokens.
He underscored the importance of recognizing red flags in investment opportunities and distinguishing between digital assets and fiat currency.
The event also featured a Q&A session and similar discussions across EFCC’s zonal directorates, aimed at raising awareness and empowering Nigerians to guard against virtual asset and investment fraud.