The Economic and Financial Crimes Commission (EFCC) has accused some banks and financial technology companies of negligence and compromise that enabled large-scale fraudulent investment schemes, leading to losses of over ₦18.7 billion by Nigerians.
The disclosure was made in Abuja on Thursday during a media briefing addressed by the EFCC’s Director of Public Affairs, Wilson Uwujaren. He revealed that investigations uncovered serious compliance failures by several financial institutions, allowing fraudsters to exploit Nigeria’s financial system with little resistance.
According to Uwujaren, one new-generation commercial bank and six fintech and microfinance banks were implicated in facilitating two major fraudulent schemes—an airline discount scam and a fake investment operation.
The first scheme involved a fraudulent airline ticket discount platform targeting mostly foreign travellers. Victims were deceived into believing payments were made directly to airline accounts, only for fraudsters to immediately drain their funds. The EFCC said more than 700 victims lost a total of ₦651 million, with about ₦33.6 million already recovered and refunded.
Uwujaren warned that foreign actors behind the scam converted stolen funds into cryptocurrency and transferred them abroad through digital platforms, including Bybit.
The second scheme was linked to Fred and Farid Investment Limited (FF Investment), which allegedly defrauded over 200,000 Nigerians through multiple investment packages operated by nine companies. The EFCC disclosed that the scheme generated about ₦18.09 billion in fraudulent proceeds.
EFCC officials said foreign nationals, working with three Nigerian accomplices who have since been arrested and charged, masterminded the schemes. Investigators further revealed that some financial institutions allowed fraudsters to operate hundreds of accounts without proper customer due diligence, including a case where a single individual allegedly controlled 960 accounts in one bank.
The Commission expressed concern that cryptocurrency transactions worth ₦162 billion passed through a commercial bank without adequate scrutiny. It called on regulators to strictly enforce compliance with Know Your Customer (KYC), Customer Due Diligence (CDD), and Suspicious Transaction Reporting (STR) requirements.
Uwujaren warned that banks, fintech firms, and microfinance institutions found to be aiding fraudsters would face suspension, investigation, and possible prosecution. He reaffirmed the EFCC’s commitment to combating financial crimes and urged financial institutions to strengthen internal controls to prevent further abuse of Nigeria’s financial system.
