The Director-General of the Securities and Exchange Commission (SEC) Nigeria, Dr. Emomotimi Agama, has raised concern over the sharp rise in suspicious cryptocurrency-related transactions across West Africa. Speaking at the West Africa Compliance Summit organised by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), Agama revealed that the region recorded suspicious crypto-linked transactions worth $2.1 billion in 2024 alone.
The event, which was held recently in Praia, Cape Verde, brought together key compliance experts and regulators from across the sub-region. Agama’s warning highlights growing fears that while digital assets are gaining popularity across West Africa, criminal elements are exploiting regulatory gaps to engage in illicit financial activities.
Agama noted that criminals are using sophisticated schemes to deceive unsuspecting users, especially through decentralised finance (DeFi) platforms. He said: “DeFi ‘rug pulls’ continue to defraud unsuspecting users. GIABA reported $2.1 billion in suspicious crypto-linked transactions in West Africa in 2024, with terror groups exploiting privacy coins to evade detection.”
The SEC boss cited artificial market crashes, unlicensed exchanges disappearing with users’ funds, and the lack of strong regulatory oversight as some of the major reasons for investor losses across the region. “Regulation, therefore, is not optional but an imperative,” Agama stressed.
He explained that as more people adopt virtual assets in Nigeria and across the sub-region, regulators must urgently work together to strengthen compliance systems. According to him, the absence of a uniform regulatory approach has created loopholes that bad actors exploit with ease.
“A trader banned in Nigeria simply relocates to Ghana. ECOWAS must adopt a Unified VASP (Virtual Asset Service Provider) Licensing System,” he said. “We must harmonise our regulatory frameworks, share intelligence, and adopt best practices to close loopholes exploited by bad actors.”
Dr. Agama added that the Nigerian SEC is stepping up its digital surveillance capabilities. He disclosed that the Commission is planning to deploy artificial intelligence (AI) tools for real-time blockchain analytics to track suspicious activity and protect investors.
He also linked the need for stronger oversight to recent Ponzi scheme collapses in Nigeria, including the CBEX fraud, which left many investors stranded. As part of its response, the SEC has launched a public awareness campaign against Ponzi schemes and other fraudulent investment platforms. The campaign has already reached areas in Abuja and Lagos, with plans to cover more states in the coming months.
The SEC’s focus on public education is part of a wider effort to increase investor protection and reduce financial crime risks in the growing virtual asset space. Dr. Agama maintained that the Commission is committed to maintaining market integrity and protecting Nigerians from the risks that come with unregulated digital financial products.
The call for a unified regional approach is not new. Financial analysts have long argued that different standards and enforcement levels in ECOWAS countries give criminal operators room to hop from one jurisdiction to another. By advocating a shared licensing and regulatory system, Agama believes countries can collectively fight money laundering, terrorism financing, and cross-border investment scams.
GIABA, the West African Financial Action Task Force-style body responsible for strengthening anti-money laundering and counter-financing of terrorism (AML/CFT) efforts, has also identified virtual assets as a growing area of concern. Its 2024 report confirmed that privacy-focused cryptocurrencies are being used by criminal networks and terrorist groups to hide their financial activities.
With the crypto market evolving rapidly, experts say regulators must not only catch up but anticipate trends through advanced tools and international collaboration. SEC Nigeria’s move to incorporate AI into its blockchain monitoring efforts is part of a global trend where regulatory agencies are turning to technology to enhance their capabilities.
Dr. Agama concluded by urging all West African countries to treat digital asset regulation as a shared responsibility. “This is a regional challenge that needs a regional solution,” he said. “The earlier we act, the safer our financial systems will be.”
