EFCC Flags Widespread Money Laundering in Nigeria’s Real Estate Sector

The Economic and Financial Crimes Commission (EFCC) has raised serious concerns over rampant money laundering in Nigeria’s real estate industry, identifying estate developers as major enablers due to insufficient background checks on investors.

In a statement shared via the EFCC’s official social media accounts on Wednesday, Chairman Ola Olukoyede urged property developers to vet investors and verify the legitimacy of their sources of funds.

Speaking at an event in Abuja titled “Tackling Illegal Property Sales, Fake Developers, and Unlicensed Agents,” Olukoyede highlighted the sector’s growing vulnerability to illicit financial flows.

“Based on reports and statistics we’ve gathered, money laundering is alarmingly common among real estate stakeholders,” he said.

He emphasized the importance of Know Your Customer (KYC) protocols, urging developers to adopt them proactively. “Even if the law doesn’t mandate KYC, you should do it for the sake of your business’s survival,” he added.

Olukoyede warned that developers who unknowingly accept criminal proceeds could face asset recovery actions. “If stolen money is used to purchase property from you and it’s traced, we will recover it — you can’t retain proceeds of crime,” he said.

Stressing regulatory adherence, he noted that the main difference between Nigeria and countries with effective systems lies in compliance. He criticized developers who operate without understanding existing laws and encouraged them to align with regulations to ensure business success.

While delivering stern warnings, the EFCC chairman also expressed support for legitimate enterprises. “Our aim is to help you succeed. When your business thrives, you create jobs, reducing the likelihood of financial crimes,” he said.

Olukoyede invited developers to collaborate with the EFCC, assuring them of open communication and institutional backing. “Our doors are open. We’re not here to shut your business down,” he concluded.