New collaboration targets crypto scams, money laundering, and unlicensed digital finance operators…
In a decisive move to tighten oversight of Nigeria’s expanding digital finance sector, the Securities and Exchange Commission (SEC) has announced a strategic partnership with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to track and freeze illicit digital wallets linked to money laundering, crypto scams, and other financial crimes.
The SEC’s Director-General, Emomotimi Agama, disclosed this in Abuja during the 2025 SEC Journalists’ Academy, themed “The ISA 2025 and the Future of Nigeria’s Capital Market: Innovation, Protection, and Growth.”
Represented by the SEC’s Head of External Relations, Efe Ebelo, Agama said the collaboration will enhance enforcement, transparency, and investor protection in the country’s fast-evolving digital asset landscape.
“To strengthen enforcement, the SEC is working closely with the Central Bank of Nigeria and the Economic and Financial Crimes Commission to freeze illicit digital wallets and recover criminal proceeds. Our goal is to ensure that innovation serves progress, not predation,” Agama said.
Nigeria Among World’s Top Crypto-Adopting Nations
Agama noted that Nigeria remains one of the world’s leading adopters of digital assets, with over one-third of its population engaged in crypto-related activities. This growth, he said, has been fuelled by the country’s youthful population, high mobile connectivity, and strong drive for financial inclusion.
However, he warned that the sector’s rapid expansion has also opened doors for fraudsters exploiting regulatory gaps through fake wallet apps, phishing attacks, ransomware, and Ponzi-style crypto investments that have defrauded thousands of citizens.
“Without strong regulation, innovation can quickly become vulnerability,” he cautioned. “Regulation is not about restriction, it’s about building trust and ensuring innovation strengthens our economy rather than weakens it.”
SEC Deploys AI, Blockchain Analytics for Market Surveillance
Agama explained that the SEC’s 2022 Rules on Digital Assets established a comprehensive framework for Virtual Asset Service Providers (VASPs) built on licensing, compliance, and transparency. The framework also integrates anti-money laundering and counter-terrorism financing standards in line with global benchmarks such as the Financial Action Task Force (FATF) guidelines.
He added that the Commission is deploying blockchain analytics and artificial intelligence (AI) tools to trace transactions, detect fraud, and bolster cybersecurity ensuring faster, more proactive responses to suspicious financial activity.
Over N174bn Lost to Ponzi Schemes
In a related presentation, Head of FinTech and Innovation at the SEC, Abdulrasheed Dan-Abu, revealed that Nigerians have collectively lost more than N174 billion to over 440 Ponzi schemes in recent years, highlighting the urgent need for stronger investor education and enforcement.
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