SEC, CBN, EFCC Partner to Track and Freeze Illicit Digital Wallets
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has entered into a strategic collaboration with the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to track and freeze illicit digital wallets used for money laundering and other financial crimes.
The initiative, according to the Director-General of the SEC, Dr. Emomotimi Agama, represents a major step toward protecting investors and strengthening integrity in Nigeria’s fast-growing digital finance ecosystem.
Agama disclosed this in Abuja while addressing participants at the Abuja Journalists Academy during a lecture titled “The Regulation of Digital Assets and Virtual Asset Service Providers in Nigeria.”
Represented by Mrs. Efe Ebelo, Head of External Relations Department of the SEC, Agama said the partnership was designed to enhance enforcement coordination among financial and security agencies.
“To strengthen enforcement, the SEC is working closely with the Central Bank of Nigeria and the Economic and Financial Crimes Commission to freeze illicit digital wallets and recover criminal proceeds,” he stated. “Our goal is to ensure that innovation serves progress, not predation.”
The SEC boss noted that Nigeria ranks among the world’s top adopters of digital assets, with more than one-third of the population engaged in crypto-related activities. He said this reflects the creativity of Nigerian youth, the spread of mobile technology, and the nation’s growing drive for financial inclusion.
However, Agama cautioned that the rapid expansion of digital assets has also opened new channels for abuse. He identified major threats such as crypto scams, fake wallet applications, phishing attacks, and ransomware schemes that have defrauded unsuspecting citizens.
“Without strong regulation, innovation can quickly become vulnerability,” he warned. “Regulation is not about restriction; it is about building trust and ensuring that innovation strengthens our economy rather than weakens it.”
To address these challenges, Agama said the SEC has developed a comprehensive regulatory framework for Virtual Asset Service Providers (VASPs) under its 2022 Rules on the Issuance, Offering, and Custody of Digital Assets. The framework, he explained, rests on three pillars — licensing, compliance, and transparency — aimed at building a fair and secure digital asset market that protects investors and discourages financial crimes.
Beyond issuing regulations, the SEC has also adopted modern technological tools to strengthen oversight. Agama said the Commission now deploys blockchain analytics tools and artificial intelligence (AI) to trace transactions, detect fraud, and improve cybersecurity.
“We are leveraging blockchain analytics, AI, and advanced monitoring systems to strengthen our supervisory capacity,” he explained. “This will help us respond faster to suspicious transactions and protect market integrity.”
He added that the collaboration with the CBN and EFCC would enhance coordination between financial regulators and law enforcement agencies, allowing them to act swiftly against cross-border financial crimes and illicit digital activities.
Agama also placed Nigeria’s regulatory efforts within a global context, noting that the Financial Action Task Force (FATF), through Recommendation 15, now requires all VASPs to implement Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) controls.
He referenced other jurisdictions such as the European Union, which operates under the MiCA framework, and the United States, where regulators have intensified enforcement against unregistered exchanges and fraudulent digital asset offerings.
“The message globally is clear — digital finance must be as transparent, accountable, and investor-friendly as traditional finance,” he stated.
According to Agama, the SEC is determined to maintain a regulatory balance that encourages innovation while safeguarding the financial system from exploitation. “If regulators clamp down too hard, innovation migrates offshore; if they regulate too softly, risks multiply,” he said. “Our task is to find the right balance — one that encourages creativity while protecting Nigerians from exploitation.”
He further noted that digital assets are no longer a fringe concept but a structural pillar of modern finance, reshaping markets and redefining trust, ownership, and value exchange worldwide.
Agama concluded by reaffirming the SEC’s commitment to building a digital finance ecosystem rooted in ethics and transparency. “The future of finance is digital, but its foundation must remain ethical, transparent, and trustworthy,” he said. “Trust is the ultimate currency, and as regulators, our highest duty is to preserve it.”
He urged Nigerian innovators, fintech firms, and investors to embrace responsible innovation, assuring them that the SEC’s goal is to create a secure environment that promotes financial inclusion, investor protection, and national development.
