Virtual assets emergence has led to a surge in cryptocurrency fraud in Nigeria – Tinubu

President Bola Tinubu has stated that the emergence of virtual assets has resulted in a surge of cryptocurrency fraud in Nigeria.

This was disclosed in a statement posted on the X page of Stanley Nkwocha, Senior Special Assistant to the President on Media & Communications (Office of the Vice President).

President Tinubu made this announcement on Monday, October 7, 2024, during his opening speech at the 6th Economic and Financial Crimes Commission/National Judicial Institute Capacity Building Workshop for Justices and Judges, held at the NJI in Abuja.

He advised judges to familiarize themselves with recent technological advancements and relevant laws to effectively administer justice concerning crypto-related fraud.

Complexity of Financial Crimes 

Tinubu, represented by Vice President Kashim Shettima, observed that advances in technology have increased the complexity of financial crimes beyond the scope of current jurisprudence, emphasizing that the “emergence of virtual assets has led to a surge in cryptocurrency fraud.”

He urged the judiciary to equip courts with the necessary skills and equipment to handle these new forms of crime.

“As an administration, we remain committed to creating the right environment for judicial officers to fulfill their responsibilities. One of the major actions of the government within the first year of my administration was to improve the welfare of judges with an increase in their remuneration.

“Official accommodation is also being provided for various categories of judicial officers in high-end areas of the Federal Capital Territory,” he added.

He mentioned that the executive branch is doing its part to redirect recovered proceeds of corruption into critical social programs like the Students Loan Fund while reducing the pressure on vulnerable Nigerians to resort to corrupt practices.

“The two notable initiatives are the Students Loan Fund managed by NELFUND and the Consumer Credit Scheme under the supervision of the Nigerian Credit Corporation. 

“With easy access to loans, we are confident that most of our indigent students will have no need to engage in cybercrime, while the credit scheme offers workers easy access to funds despite the harsh economic realities,” he added.

He commended the EFCC for its commitment to fighting economic and financial crimes, particularly in tracing and recovering stolen assets, and assured that the federal government will continue to support the Commission to ensure it can fulfill its statutory mandate without hindrance.

More Insights 

Shettima also identified frivolous appeals, alleged intimidation of judges by lawyers, and judgments based on technicalities as major challenges impeding the fight against corruption in Nigeria.

However, he acknowledged that the prosecution of corruption cases has improved remarkably due to justice sector reforms in recent years.

“There is no denying that the judiciary is central to the success of anti-corruption efforts. The commitment, courage, and patriotism of judicial officers are crucial in the fight against corruption. 

“Although I recognize that the prosecution of corruption matters has improved due to recent justice sector reforms, we are not unaware of the challenges that continue to impede the swift adjudication of corruption cases. 

“These include frivolous applications and appeals aimed at delaying trials, intimidation of judges by counsel, and judgments based not on the facts of cases but on technicalities,” he said.

On her part, the Chief Justice of Nigeria, Hon. Justice Kudirat Kekere-Ekun, noted that law enforcement agencies must begin to view judicial officials as partners in the anti-graft campaign in Nigeria.

She pledged the support and commitment of the judiciary to the anti-corruption campaign through capacity-building initiatives for justices, judges, and prosecuting officers.

The EFCC Chairman, Mr. Ola Olukoyede, stated that the workshop would greatly contribute to realizing the renewed vision and objectives of all anti-graft agencies under the current administration.

What You Should Know 

Nairametrics previously reported that, among other requirements, the Securities and Exchanges Commission’s framework applies to virtual asset service providers and token issuers conducting business in Nigeria or offering services to Nigerian consumers, including platforms that facilitate the offering, trading, exchange, custody, and transfer of virtual/digital assets.

Through ARIP, the SEC has opened the door for cryptocurrency platforms to come under the federal government’s regulatory purview, considering tax obligations and other pertinent national security issues.

Nigeria is among the countries with the highest and fastest rates of crypto adoption. Over 22 million people (10.3% of the population) are active crypto owners.

The crackdown on peer-to-peer naira trading by the Nigerian SEC led to Binance and KuCoin delisting the naira from their platforms.

The ongoing dispute between Nigerian authorities and Binance, the largest crypto exchange in the world, has been widely covered in major news outlets.