Nigeria battles a N162 billion crypto fraud surge amid digital finance boom

Nigeria is facing a sharp rise in cryptocurrency-related crimes as digital finance grows rapidly across the country. Authorities have linked major financial institutions, including a new-generation commercial bank and six fintech firms, to a N162 billion fraud involving crypto transactions earlier this year. The surge in illegal activity has prompted calls for stronger measures to tackle financial crime and cyber threats.

Meanwhile, the United Nations Office on Drugs and Crime (UNODC) has launched a five-year programme to help Nigeria combat illicit finance, corruption, and transnational crime.

Cryptocurrency adoption in Nigeria has expanded faster than in most countries, making it a hotspot for both legitimate and illegal transactions. The Economic and Financial Crimes Commission (EFCC) recently uncovered a N162 billion fraud scheme tied to crypto dealings, implicating multiple financial firms. Officials warn that criminal networks are increasingly using digital currencies to move funds across borders, exploiting gaps in regulation.

Global data shows a similar trend. Since 2020, active crypto users have jumped from around 100 million to over 500 million by 2025, according to Chainalysis. Illicit transactions alone surpassed $160 billion last year, with Nigeria among the top countries for crypto-related crime growth. Russia, Nigeria, and India saw the highest increases in illegal crypto use—often linked to scams, sanctions evasion, and darknet markets. The UNODC's new country programme (2026–2030) aims to strengthen Nigeria's ability to fight these threats. It will focus on improving law enforcement, supporting institutions, and addressing emerging financial crimes. Anti-corruption agencies stress that tackling the issue requires better coordination, intelligence-sharing, and institutional capacity. Authorities have also raised concerns about foreign crime groups, such as Asian syndicates, expanding cybercrime operations into Africa. These networks take advantage of weak oversight and the rapid growth of digital finance to launder money and defraud victims.

The EFCC and other agencies are pushing for tighter controls on cryptocurrency use to curb fraud and money laundering. The UNODC's programme will provide additional support, but success depends on sustained efforts to improve enforcement and cross-border cooperation. With illicit crypto transactions rising globally, Nigeria's response will be closely watched in the coming years.