Several Nigerian banks, fintech firms and microfinance institutions are under the threat of suspension and prosecution following their alleged roles in fraud schemes that led to losses of more than N180 billion.
This is as the Economic and Financial Crimes Commission (EFCC) has raised the alarm over what it described as deep-rooted compromise within parts of Nigeria’s financial system, calling on regulators to decisively sanction institutions found to have aided fraudsters.
Speaking at a media briefing in Abuja, the EFCC’s Director of Public Affairs, Wilson Uwujaren, disclosed that investigations uncovered an N18.7 billion investment scam and suspicious cryptocurrency transactions valued at N162 billion, allegedly facilitated by financial institutions.
Uwujaren said one new-generation commercial bank, six fintech companies and several microfinance banks were indicted for enabling fraud syndicates to launder illicit proceeds.
According to him, investigations revealed that cryptocurrency transactions worth N162 billion passed through a single bank without adequate due diligence, while one customer reportedly operated 960 accounts in the same institution, all allegedly used for fraudulent activities.
He said such lapses amounted to a clear breakdown of standard banking procedures, allowing criminals to convert stolen funds into digital assets and transfer them beyond regulatory reach.
Uwujaren added that the EFCC has urged relevant regulatory agencies to enforce strict compliance with Know Your Customer (KYC), Customer Due Diligence (CDD) and Suspicious Transaction Reporting (STR) obligations.
“Financial institutions found to be aiding and abetting fraudsters should be suspended and handed over to the EFCC for full investigation and possible prosecution,” he said.
On the details of the scams, Uwujaren explained that the N18.7 billion investment fraud involved two major schemes, one of which was an airline ticket discount scam designed to deceive unsuspecting travellers.
He said fraudsters advertised fake discounts on international flights and structured payment channels to appear as though payments were being made directly to airlines, after which victims’ accounts were completely drained.
More than 700 victims reportedly lost N651.1 million to the scheme, although Uwujaren said the EFCC has recovered N33.63 million and returned it to some of the victims.
The second scheme involved Fred and Farid Investment Limited, popularly known as FF Investment, which lured Nigerians into fraudulent investment offers.
Uwujaren said over 200,000 victims were affected, with about N18.1 billion collected through nine companies offering fake investment packages.
He added that foreign nationals were behind the schemes, working with three Nigerian accomplices who have been arrested and charged to court, while urging Nigerians to be more vigilant in financial and online transactions.
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