Nigeria accuses "fraudulent politicians" of using Crypto to hide corrupt assets

Chairman of the Economic and Financial Crimes Commission #Nigeria (EFCC), Ola Olukoyede, stated that corrupt politicians in Nigeria are using cryptocurrency (crypto) to conceal their illegal assets.

The extent of corruption through Crypto is unclear

Speaking at the African Union Anti-Corruption Day event, Olukoyede warned about the risks from the increasing use of crypto, particularly in investment scams. He emphasized that "fraudulent politicians have been and are perfecting schemes, hiding illegal assets in cryptocurrency to evade investigation by anti-corruption agencies."

Although the EFCC did not provide details, anti-corruption experts in Africa agree that crypto has become a factor in political corruption, even though there is no public data identifying the exact scale. Nigeria being one of the largest peer-to-peer crypto markets (#P2P ) in Africa, along with historical issues regarding transparency, makes the use of crypto to store illegal assets feasible.

The Governor of the Central Bank of Nigeria also noted that crypto transactions have exploded, reaching over $56 billion from July 2022 to June 2023, accompanied by a rise in scams. Approximately 70% of financial scams are related to digital channels such as crypto exchanges, and more than 30 Ponzi schemes involving cryptocurrency have been identified. To mitigate corruption related to crypto, Nigeria needs to develop a stronger legal framework, combining innovation with compliance with anti-money laundering regulations.