The Economic and Financial Crimes Commission (EFCC) is urging the Nigerian government to approve a 300% increase in its annual budget to strengthen efforts against escalating financial crimes, particularly cybercrime and cryptocurrency fraud, which have caused substantial financial losses across the country.
During an oversight visit to the EFCC headquarters in Abuja on Monday, the Senate Committee on Anti-Corruption and Financial Crimes was briefed by EFCC Chairman Ola Olukoyede, who emphasized the urgent need for enhanced technological resources, including advanced software to investigate virtual currencies. The EFCC estimates that fraudulent crypto trading has resulted in losses amounting to N3.4 billion.
Olukoyede highlighted the agency’s achievements in 2023, including nearly 3,500 convictions, some of which were high-profile cases. Additionally, the EFCC has made significant financial recoveries, tracing and recovering nearly N250 billion in cash, millions of dollars in foreign currencies, and various real estate properties.
However, the EFCC continues to face significant challenges, particularly with regard to economic sabotage and cybercrime, which have been responsible for nearly $500 million in losses this year. Olukoyede pointed out that despite the agency’s success in recovering funds and prosecuting offenders, it lacks the resources to fully address these growing threats.
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“We have complied with statutory requirements, submitting our reports promptly. Our annual report covers activities from January to December 2023, and we have responded to requests for statutory documents and statistics through October this year,” Olukoyede stated.
“In the past year, we have made significant recoveries, tracing and recovering close to N250 billion in cash and several tens of millions of dollars, as well as numerous real estate properties nationwide. Not all recovered funds go directly to the Federation account; some are returned to victims of financial crimes”, the EFCC boss said.
Olukoyede also highlighted the need for more robust resources to combat rising crypto-related fraud. “We need software to investigate crypto and virtual currencies, which could help us recover significant funds annually. We urge collaboration to recover and utilize assets effectively,” he said.
The EFCC Chairman also expressed concern over the agency’s operational costs and security risks. He explained that most of the EFCC’s zonal offices are located in rented facilities, which not only increase costs but also expose the agency to security threats. Increased funding would allow the EFCC to address these concerns and improve its ability to tackle financial crimes effectively.
Senator Emmanuel Udende, Chairman of the Senate Committee on Anti-Corruption and Financial Crimes, voiced strong support for the EFCC’s funding request. He agreed that the agency’s need for more resources, including technology to track cryptocurrency fraud, was critical to its mission.
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“When the EFCC chairman is telling you that he needs software to tackle and fraudulent cryptocurrency trading, valued at about N3.4 billion, then you will understand why they need more funding. What we will do is to increase their funding through budgetary allocation,” Udende said, adding that the EFCC should, like the Nigeria Customs Service, retain a portion of its recovered funds to improve its operational capacity.
With cybercrime and other financial crimes continuing to pose significant threats to Nigeria’s economy, the EFCC’s request for a substantial budget increase aims to equip the agency with the necessary tools and resources to better fight these crimes and protect the country’s financial system.