The Economic and Financial Crimes Commission (EFCC) has revealed how public funds were allegedly moved from a local government account to a private company before being transferred into cryptocurrency wallets.
EFCC Chairman Ola Olukoyede disclosed this on Monday while briefing media executives and journalists in Abuja, saying the commission could not ignore suspicious movements of public money.
Olukoyede did not identify the local government, private company or state involved in the transaction.
He said the commission’s Fraud Risk Assessment and Control Department detected the suspicious transactions and froze the funds for 72 hours to determine their destination and purpose.
The EFCC chairman said he was aware of calls for his removal over such interventions but insisted the commission had a duty to act when it detected suspicious transactions.
“When we see money moving suspiciously, we move in and freeze it in the interim. I know some of you are calling for my head,” he said.
According to Olukoyede, investigators first discovered funds being moved from a local government account to a company before tracing the money to cryptocurrency wallets.
“Apart from that phase, we discovered that the money has gone into cryptocurrency wallets,” he said.
He questioned whether law enforcement agencies should ignore such transactions, arguing that the EFCC must intervene to prevent public funds from being diverted.
Olukoyede said the development reinforced the need for law enforcement agencies to move away from waiting for public funds to be stolen before taking action.
“Why must we be waiting for money to be stolen? Why can’t we change the narrative?” he asked.
The disclosure comes amid an earlier controversy over the EFCC’s freezing of an account belonging to the Osun State Government shortly before the August 15 governorship election.
However, Olukoyede did not link the transaction he cited to Osun State or any other state.
‘Cybercrime Has Gone Beyond Yahoo Yahoo’
Olukoyede also warned that cybercrime in Nigeria had evolved beyond the traditional “Yahoo Yahoo” phenomenon, with young people allegedly being used as fronts to move illicit funds through cryptocurrency wallets.
He said some public officials under investigation could not be linked to tangible assets because allegedly stolen funds were being transferred to students and other young people who opened cryptocurrency wallets around the world.
“They steal this money, give it to students, give it to young people. They open cryptocurrency wallets all over the world.”
According to him, the funds can then be moved abroad within a short period and used to purchase properties and luxury items.
The EFCC chairman said the commission had developed the capacity to trace cryptocurrency wallets, particularly those linked to virtual asset platforms registered in Nigeria.
He disclosed that about 40 virtual asset platforms had been licensed as part of measures to strengthen regulation and oversight of the sector.
EFCC Develops National Confiscation Wallet
Olukoyede further disclosed that the EFCC had recovered virtual assets linked to the CBEX fraud but acknowledged challenges in managing confiscated cryptocurrency.
“When you recover virtual assets, where do you put them? No accountability. That’s why we can’t continue like this,” he said.
He said the Federal Government had consequently approved the establishment of a national confiscation wallet where virtual assets recovered by law enforcement agencies would be kept.
“Today, now we have a national confiscation wallet,” Olukoyede said.
He called for stronger technological capacity among financial and law enforcement institutions to tackle the growing use of cryptocurrency in illicit financial activities.
“Some of the people you are calling Yahoo, see your young children; they are stealing on behalf of London, on behalf of public servants,” he said.
EFCC Reports N288.1bn Tax Recoveries
Olukoyede also said the EFCC’s anti-corruption activities had contributed to revenue mobilisation, with federal and state tax recoveries totalling about N288.1 billion during the period under review.
He said the figure comprised N173.2 billion in federal tax recoveries and N114.9 billion attributed to State Internal Revenue Services.
The EFCC chairman further disclosed that more than 40 commission personnel had been dismissed over alleged corruption and financial malpractice during the past two and a half to three years.
He added that some of the dismissed officials were already facing prosecution, while case files involving others were being prepared for prosecution.
