The Economic and Financial Crimes Commission has disclosed widespread failures within Nigeria’s financial system, revealing that several commercial banks, fintech companies, and microfinance banks enabled the laundering of ₦162 billion through cryptocurrency transactions and ₦18.7 billion in direct fraud proceeds without carrying out mandatory due diligence.
The anti-graft agency stated that the lapses enabled fraudsters, many of whom are foreign nationals, to exploit weaknesses in the Know Your Customer and Customer Due Diligence processes. According to the EFCC, these failures made it possible for illicit funds to be moved, converted into digital assets, and transferred to offshore destinations, leaving more than 900,000 Nigerians and foreign victims defrauded.
The revelations were made on Thursday, January 22, in Abuja during a media briefing by the Director of Public Affairs of the EFCC, Wilson Uwujaren. He said the disclosures were part of major investigative breakthroughs recorded by the Commission at the start of its 2026 operational year.
Uwujaren explained that investigations showed some financial institutions deliberately or negligently ignored basic compliance requirements. He said these actions created loopholes that were systematically exploited by organised fraud syndicates operating within and outside Nigeria.
One of the schemes uncovered by the EFCC involved a fake airline ticket discount platform used to defraud unsuspecting foreign travellers. Uwujaren said the syndicate designed payment modules that closely resembled legitimate airline payment systems, making victims believe they were paying directly to airline accounts.
He explained that once payments were made, the fraudsters gained access to the victims’ bank accounts and emptied their funds almost immediately. Although only seven victims initially reported the incident, further investigation revealed that more than 700 people were affected by the scam.
According to the EFCC, the total amount lost in the fake airline ticket scheme was estimated at ₦651.1 million. Uwujaren said the Commission has so far recovered ₦33.6 million, which has been returned to affected victims.
He disclosed that the scheme was masterminded by a foreign national who recruited young Nigerians to execute the operation. The suspects were provided with laptops and specialised software, while compromised bank accounts were used to receive the proceeds of the fraud. The funds were later converted into cryptocurrency and transferred through the Bybit trading platform.
The EFCC also uncovered a much larger investment scam that targeted Nigerians across the country. Uwujaren said more than 900,000 people were defrauded through bogus investment packages marketed by nine companies posing as legitimate investment firms.
He stated that the fraudulent scheme generated about ₦18.1 billion from unsuspecting investors. Investigations revealed that foreign nationals were again at the centre of the operation, while three Nigerian collaborators have been arrested and charged in court. Uwujaren added that efforts are ongoing to track down other suspects who are currently on the run.
A major concern raised by the EFCC was the role of financial institutions in facilitating these crimes. Uwujaren disclosed that a new-generation bank, along with six fintech and microfinance banks, compromised standard banking procedures, allowing fraud proceeds to pass through the financial system unchecked.
He said a total of ₦18.7 billion was moved through various accounts without proper customer verification. He further described as alarming the discovery that cryptocurrency transactions worth ₦162 billion passed through a single new-generation bank without adequate due diligence.
According to Uwujaren, investigations also showed that one bank allowed a single customer to operate as many as 960 bank accounts, all of which were used solely for fraudulent activities. He described the findings as a serious threat to the integrity of Nigeria’s financial system.
The EFCC called on financial sector regulators to enforce strict compliance with anti-money laundering and counter-terrorism financing regulations. Uwujaren warned that any bank or financial institution found to be aiding or abetting fraud would face sanctions, investigations, and possible prosecution.
He stressed that negligence, weak internal controls, and failure to monitor suspicious transactions would no longer be tolerated. Uwujaren urged banks, fintech firms, and microfinance institutions to urgently strengthen their systems to prevent further exploitation and protect the nation’s economy from continued financial crimes.
