Nigeria sounds alarm as $2.1bn in suspicious crypto transactions shake West Africa

Nigeria’s Securities and Exchange Commission (SEC) has raised the red flag following revelations of $2.1 billion in suspicious cryptocurrency transactions across West Africa in 2024,according to a study by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA).

SEC Director-General,Emomotimi Agama,speaking at the recent West Africa Compliance Summit in Cape Verde,warned that decentralized finance (DeFi) “rug pulls,” fake crashes,and unregistered exchanges have caused significant investor losses. He noted that terrorist groups are increasingly using privacy coins to conceal illicit activity,whereby the rapid adoption of virtual assets across Africa is being undermined by these criminals exploiting regulatory blind spots. Agama also stressed that this is no longer a local problem,as “trader banned in Nigeria simply relocates to Ghana.”

To counter the trend,Agama urged ECOWAS nations to “adopt a Unified VASP (Virtual Asset Service Provider) Licensing System.” He also revealed plans for enhanced blockchain monitoring using AI tools and tighter compliance checks. Following the collapse of the fraudulent CBEX scheme,which claimed to be linked to China Beijing Equity Exchange and cost Nigerians up to ₦1.3 trillion ($840 million),the SEC has launched a national Ponzi awareness campaign targeting cities like Lagos and Abuja. “We must harmonize our regulatory frameworks,share intelligence,and adopt best practices to close loopholes exploited by bad actors,” Agama stressed.