EFCC Warns Nigerians Against Investment Scams, Cites Lack of Due Diligence
By Musbahu Basirka
Abuja Nigeria .
The Economic and Financial Crimes Commission (EFCC) has cautioned Nigerians to exercise caution when investing their money to avoid falling prey to fraudulent schemes. EFCC Chairman, Ola Olukoyede, made this call on Thursday, July 10, 2025, at a Public Lecture commemorating the 2025 African Union Anti-corruption Day.
Olukoyede noted that investment fraud, including virtual assets fraud, is spreading rapidly across Africa, with fraudsters exploiting vulnerable investors through dishonest schemes. He cited the example of the CBEX situation, where many investors lost their funds due to the operators’ shenanigans. According to Olukoyede, the investing public inadvertently aids fraudulent practices through lack of due diligence on schemes advertised to them.
The EFCC Chairman also highlighted the role of rogue politicians in using virtual assets to shield and secure their ill-gotten 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,” Olukoyede said.
Olukoyede emphasized that cryptocurrency and virtual assets are not designed as tools of crime but are products of the Digital Age. However, he noted that criminals put them to wrong use, exploiting their genuine purposes.
The EFCC Chairman reaffirmed the agency’s readiness to tackle every challenge posed by cryptocurrencies and other virtual assets. “For us at the EFCC, virtual assets fraud and investment scam are not hard nuts to crack. Proactive and broad-based training and intelligence are bringing fraudulent schemes to the fore,” Olukoyede said.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, disclosed that Nigeria recorded over $56 billion in crypto-related transactions between July 2022 and June 2023, making it Africa’s digital transaction leader. However, he noted that this growth is not without consequences, citing a 45% surge in financial fraud cases, with 70% of losses linked to digital channels, including unregulated virtual asset platforms.
The Director-General of the Securities and Exchange Commission (SEC), Emomotiti Agama, emphasized the importance of investor education in recognizing and avoiding fraudulent schemes. He noted that the SEC is committed to strengthening regulatory frameworks to keep pace with evolving risks in virtual assets and digital investments.
The EFCC’s warning serves as a timely reminder for Nigerians to exercise caution when investing their money. As the agency continues to combat virtual assets fraud, it is essential for investors to conduct due diligence on schemes advertised to them and report suspicious transactions to the EFCC.
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