During a press briefing in Abuja, Ola Olukoyede, the Chairman of Economic and Financial Crimes Commission (EFCC), announced that the Commission had taken action to freeze more than 300 bank accounts in order to protect the Naira from additional damage. He referenced a 2022 report from the Nigerian Communications Commission (NCC) that revealed Nigerian banks had incurred a ₦8 billion loss solely from cybercrimes. According to his statements, it was also mentioned in the report that Nigeria suffers a $500 million loss each year due to cybercrimes.
He stated that the Commission is dedicated to fighting Corruption and financial misconduct, as well as promoting Economic Growth in light of the recent surge in foreign exchange rates. He pointed out the Commission’s proactive measures to address forex manipulation and protect the naira, such as freezing more than 300 accounts. Olukoyede elaborated that if the EFCC had not taken action against these 300 illegal accounts, the naira would have faced a drastic decline in value within the following week.
P2P scheme poses a significant threat to the stability of Naira.
Olukoyede further disclosed that aside from the Crypto trading platform Binance, the anti-corruption agency has unravelled a new illicit scheme known as the P2P (peer-to-peer) financial trading system. This scheme operates independently from traditional banking channels, posing a significant threat to the stability of the Naira and potentially causing its value to plummet even further. The director of the EFCC pointed out that some individuals in the system are engaging in activities on P2P platforms that are even more troubling than those of Binance.
He also discussed the Commission’s ongoing initiatives to deter embezzlement of government resources through reform strategies. He emphasized the importance of examining the operational methods and protocols of the government. Olukoyede highlighted the fact that a majority of Nigeria’s industries, specifically 71 percent, fell victim to cyber-attacks in 2022. This ultimately led to a staggering loss of $706 million due to cybercrimes. It was noted that data from the FBI showed that Africa was responsible for 60% of global Cybercrime from 2018 to 2021, with Nigeria making up half of that percentage.
Nigerians suffered losses of ₦25.5 billion in 4 years.
As Technology continues to evolve at a fast pace and the internet becomes more prevalent, cyber-crime has become a significant menace to our society, economy, and personal safety. Strengthening the current laws that ban and combat cybercrime is essential. The misuse of our inadequate cybercrime regulations by malicious actors has already damaged our nation’s standing. These individuals participate in various unlawful actions such as hacking, stealing identities, committing Fraud and engaging in cyber terrorism . These criminal activities have resulted in significant financial damages to the nation and have also violated privacy, disrupted vital infrastructure, and undermined confidence in our digital networks.
Fintech banks are facing increased cyber threats due to their inadequate Security measures, which are focused primarily on enabling payments. As a result of these vulnerabilities, cybercriminals are successfully infiltrating these platforms and stealing customers’ savings. The prevalence of electronic Financial Crimes is on the rise in the country, posing a significant challenge for Fintech banks. Reports indicate that Nigerians have suffered financial losses amounting to more than ₦25.5 billion within a span of four years due to the menace.
Related Article: Cost of cybercrime to reach $12trn by 2025
The Anti-Corruption Agencies of Nigeria, a non-governmental organization, revealed that financial crimes cost each individual Nigerian an average of ₦35,000 annually. This totals to a staggering $18 billion when considering various illicit activities such as bribery, Internet fraud, and Tax Evasion across the country. NCC, is deeply concerned about the increasing problem of security threats in the Information and Communications Technology (ICT) sector. The NCC, as the regulatory body of the telecommunications sector, understands the importance of protecting consumers and maintaining the integrity of the digital environment.