The Economic and Financial Crimes Commission (EFCC) has issued a strong warning to real estate developers across Nigeria, urging them to vet the financial sources of potential investors or face losing properties tied to illicit funds.
Speaking in Abuja on August 6, 2025, at the Policy Dialogue on Critical Issues Affecting Nigeria’s Real Estate Ecosystem — a forum convened by Law Corridor — EFCC Chairman Ola Olukoyede said money laundering remains “rampant” in the property sector. He called for developers to adopt strict Know Your Customer (KYC) procedures even when not legally mandated.
“If stolen money is used to buy property from you and we trace it, we will recover it from you,” Olukoyede warned. “Don’t let anybody hide under your business to launder money. Play by the rules — it’s in your own interest.”
Olukoyede noted that lax compliance puts legitimate businesses at risk, stressing that adherence to regulations is what distinguishes successful markets in developed nations from Nigeria’s often chaotic real estate landscape.
The EFCC chief added that his administration aims to “stimulate the economy” by supporting developers who operate transparently, saying job creation and economic growth depend on lawful enterprise.
Calls for Tighter Oversight
Harry Erin, Director of the EFCC’s Special Control Unit Against Money Laundering (SCUML), urged the public to route all property transactions through licensed financial institutions, warning that cash payments above legal thresholds could attract prosecution.
“Everybody is an estate agent in Nigeria, but without proper regulation, buyers risk falling prey to fraudsters,” Erin said, adding that registered intermediaries provide accountability when disputes arise.
Bureau of Public Procurement Director-General Adebowale Adedokun echoed the need for greater scrutiny, advocating that developers demand Proof of Funds in addition to KYC checks.
“Public sector money accounts for a significant share of real estate funding in Nigeria,” Adedokun said. “We need transparency to determine how billion-naira projects are financed in a poorly regulated market.”
The EFCC maintains that tighter compliance, improved regulation, and collaboration between government and industry players are key to safeguarding Nigeria’s property sector from becoming a safe haven for illicit funds.
