Author: Gist Correspondent

The Economic and Financial Crimes Commission (EFCC) says it intercepted suspicious public funds transferred from a local government account to a private company before ending up in cryptocurrency wallets.

EFCC Chairman, Ola Olukoyede, disclosed this on Monday while addressing media executives and journalists in Abuja, describing the transactions as a growing trend in public sector corruption.

Although he did not reveal the identity of the local government, company or state involved, Olukoyede said the commission's Fraud Risk Assessment and Control Department detected the movement of funds and immediately froze the account for 72 hours to investigate.

He defended the action, saying the commission had a duty to intervene whenever it detected suspicious financial transactions.

"We saw money being moved from a local government account to a company, and from there into cryptocurrency wallets. Are those wallets meant to build roads or provide electricity for the people?" he asked.

According to him, the EFCC is shifting its focus from merely recovering stolen funds to preventing public money from being diverted in the first place.

Olukoyede also warned that cybercrime has evolved beyond internet fraud, popularly known as "Yahoo Yahoo," noting that corrupt public officials now use young people and students to move illicit funds through cryptocurrency wallets across the world.

He said the commission has developed the capacity to trace cryptocurrency wallets linked to licensed virtual asset platforms in Nigeria, adding that about 40 such platforms have been registered under the country's regulatory framework.

The EFCC chairman further disclosed that the Federal Government has approved a national confiscation wallet to securely hold virtual assets recovered by law enforcement agencies, addressing previous accountability concerns.

He also highlighted the commission's achievements over the past three years, including tax recoveries of about ₦288.1 billion for federal and state governments and the dismissal of more than 40 EFCC personnel over allegations of corruption and financial misconduct, with several already facing prosecution.

Olukoyede's remarks come amid increasing concerns over the use of digital assets to conceal and transfer proceeds of corruption, although he did not link the specific case he cited to any state or the recent freezing of an Osun State Government account.