The Economic and Financial Crimes Commission in Nigeria announced that it has recovered $20 million worth of cryptocurrencies so far from cybercrime offenders. The report was issued by AbdulRasheed Bawa, the chairman of the commission during an interview with Channels TV, a popular TV station in the country. He also revealed that the commission set up a cryptocurrency wallet for this purpose– to recover proceeds from internet fraudsters
The issue of cybercrime is a recurring issue in Nigeria that has prompted the financial crime commission to double its efforts in cracking down on internet scammers. The menace also led to an increase in the rate of extortions and killings across the country as notorious policemen saw it as an opportunity to enrich themselves. They began tagging random young men who could afford cars and sophisticated clothes as fraudsters, and threatening to kill them unless they bailed themselves out with huge sums of money. Those who couldn’t afford to bail themselves were either killed or thrown into prisons. The spate of killings and injustice was what prompted a nationwide protest that brought the country to its knees and forced the government to dissolve the body.
Chairman Bawa acknowledged that fraudsters in the country have evolved from receiving proceeds of their scams through international platforms like Moneygram and Western Union to using cryptocurrency wallets. He was quoted to have said they have gone electronic. Admittedly, the commission’s move to create a crypto wallet is a timely response to the cyber crime trend. He further said that cyber scammers get cryptocurrencies from the sale of gift cards which are then exchanged on cryptocurrency exchanges.
Ban on Crypto Transactions Issued in February
The Central Bank of Nigeria had issued a directive in February banning banks in the country from offering their services to crypto exchanges. The directive also contained an order by the principal bank, telling these banks to identify and close bank accounts which were being used to conduct crypto transactions. CBN’s decision was trailed by mixed reactions from Nigerians both in the country and Diaspora with some condemning the decision of the government and others praising the move as the right one.
A handful of political elites and regulators in the financial sector including Chairman Bawa had hailed the central bank’s directive saying it would reduce the rate of cybercrimes in the country. A lawmaker in the country’s Senate body claimed that cryptocurrencies made Naira ‘useless.’ Other financial stakeholders complained that cryptocurrencies reduced the inflow of foreign remittance into the country.
Nigeria’s Central Bank Looking to Release CBDC Before the Year Ends
The Central Bank of Nigeria has hinted at a move to create a central bank digital currency for the country. The governor of the top bank, Godwin Emefiele had suggested attempts at a digital currency earlier this year. This is against the backdrop of the strict regulations on crypto transactions which are still in effect across the country. During a bankers’ committee meeting last week, it was announced that a date will soon be announced for the launch of the country’s CBDC. The CBDC will be for public use, according to the bank.
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