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Nigeria’s financial crime agencies are ramping up efforts to tackle the growing wave of cryptocurrency-related fraud, as the rise of digital assets continues to attract both eager investors and sophisticated scammers. From Ponzi-style crypto schemes to fake trading platforms and social media scams, unsuspecting Nigerians are losing millions in digital currencies to fraudsters who exploit the hype and limited regulation around the virtual asset space.
According to recent reports from the Economic and Financial Crimes Commission (EFCC), cryptocurrency fraud has spiked significantly in the past two years, becoming one of the most reported financial crimes in Nigeria. These scams range from elaborate investment platforms promising outrageous returns to influencers on platforms like Instagram and Telegram luring people into fraudulent Initial Coin Offerings (ICOs). Many victims, often young professionals and students hoping to cash in on the crypto boom, end up with empty wallets and little legal recourse.
The decentralised nature of cryptocurrencies makes it difficult for law enforcement to trace transactions, recover lost funds, or hold perpetrators accountable—especially when scammers operate across borders. “We’re dealing with an entirely new breed of cybercriminals,” said a senior EFCC official. “They are highly tech-savvy and take advantage of both regulatory loopholes and the public’s lack of awareness.”
In 2023 alone, the EFCC received over 2,500 complaints linked to digital asset scams. These include popular fraudulent platforms disguised as legitimate investment firms, promising daily or weekly profits of up to 30%. Once victims deposit their funds, the platforms vanish or stop responding, often after months of reassuring communication and fabricated earnings reports.
The growing concern has prompted joint operations between the EFCC, the Nigerian Police Force, and the Central Bank of Nigeria (CBN). The CBN, while previously cautious about cryptocurrencies, has also stepped up warnings to the public, urging Nigerians to be vigilant and avoid platforms that aren’t registered or regulated by financial authorities.
Unfortunately, many people are drawn in by the promise of quick money, especially in a country grappling with high youth unemployment and rising inflation. The desperation for financial independence has made Nigerians particularly vulnerable to deceptive offers and online persuasion tactics. The crypto space, once seen as a democratizing force for financial inclusion, is now becoming a minefield for uninformed or overly trusting investors.
Efforts to curb the trend have included public awareness campaigns, arrests of key suspects behind major crypto schemes, and calls for stronger legislation to regulate digital asset transactions. Despite this, experts say enforcement alone isn’t enough. They recommend wider financial education initiatives and the establishment of a dedicated regulatory framework for cryptocurrencies and blockchain-based businesses.
Technology analyst, Tobi Adewale, notes that “many Nigerians still don’t understand how crypto works, and that’s part of the problem. When someone promises them a 50% return in a week, they don’t ask questions because they want to believe it’s true.”
Social media continues to play a major role in spreading these fraudulent schemes. Many scammers use influencer marketing tactics to create a sense of legitimacy and urgency around their fake projects. The anonymity of crypto transactions and the lack of a clear legal framework make it difficult for law enforcement to respond swiftly.
As Nigeria’s digital economy grows and more citizens turn to cryptocurrencies, the need for regulation, education, and better fraud detection tools becomes more urgent. Until then, authorities are urging the public to adopt a “buyer beware” mindset and treat any too-good-to-be-true investment offers with extreme caution.