Ola Olukoyede, the leading figure at the Economic and Financial Crimes Commission (EFCC), has cautioned that Nigeria could face considerable risks within its financial structures if cryptocurrency operations are not governed by appropriate regulations. Unregulated crypto activity could expose the country to widespread abuse.
Representing Olukoyede, Michael Nzekwe, who serves as his Chief of Staff, voiced this concern during a meeting on Wednesday. The meeting was a courtesy visit from the leaders of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), headed by their President, Obinna Iwuno, at the EFCC headquarters in Abuja.
He acknowledged cryptocurrency’s role as a catalyst for worldwide innovation and wealth creation. However, he also highlighted the potential for it to become a tool for illegal activities such as money laundering, funding terrorism, and various forms of fraud if left unmonitored.
“Cryptocurrency is like a new source of wealth, similar to oil. There are significant financial opportunities present. However, it is critical that the entire system is subject to proper oversight. Without these rules, even those acting in good faith could encounter difficulties.
“The difference between legitimate cryptocurrency businesses and those involved in fraudulent activities can be subtle. Worryingly, we are observing individuals in positions of political power, along with those considered to be operating legitimately, exploiting cryptocurrency to conceal illicit funds,” Olukoyede stated.
The EFCC head urged SiBAN and other invested parties within the blockchain space to prioritize educating investors and ensuring compliance, as part of a larger cooperative effort with regulatory bodies.
He proposed that the association could also be valuable in pointing out those engaged in unethical practices.
“Your collaboration can assist us in the prevention of money laundering. You have the option to report illegal activity. You can act as informants. The more comprehensive the education and training we deliver, the stronger our economy will become,” he further commented.
In response, Obinna Iwuno, the president of SiBAN, mentioned that the association has already established a code of conduct based on globally recognized standards, showcasing their readiness for formal oversight.
“We have adopted established international benchmarks to formulate a code of ethics applicable to individuals and entities operating within Nigeria.
“This demonstrates our dedication to ethical behavior, regulation, and adherence to both local and worldwide legal requirements.
“We have been advocating for regulation since 2018 because, without it, Nigeria risks capital flight,” Iwuno pointed out.
He emphasized SiBAN’s eagerness to team up with the EFCC in efforts focused on educating investors, running campaigns against scams, and creating mechanisms for reporting fraudulent activity.
According to him, the organization has already made it compulsory for digital asset platforms to follow Know Your Customer (KYC) procedures and mandated that operators employ compliance officers to guarantee accountability.
Iwuno further noted that while oversight is essential to protect investors and the financial well-being of the nation, it must not impede innovation.
“While we are promoting regulation, we also need to guarantee that innovation is not stifled.
“Nigeria possesses the biggest young demographic in Africa, and they are significantly involved in this sector. However, if suitable rules aren’t in place, we risk seeing money laundering, funding of terrorism, threats against national security, and the spread of illegal financing activities,” he said.
The SiBAN president conveyed his optimism that enhanced cooperation with the EFCC will achieve an equilibrium between fostering innovation and controlling misuse within Nigeria’s expanding cryptocurrency environment.
