Abuja, Nigeria – August 7, 2025 — The Economic and Financial Crimes Commission (EFCC) has raised a serious alarm over widespread money laundering in Nigeria’s real estate sector, blaming poor customer vetting by estate developers for fueling the problem.
EFCC Chairman Ola Olukoyede made the statement on Wednesday during an event in Abuja titled “Tackling Illegal Property Sales, Fake Developers, and Unlicensed Agents.” The event was aimed at addressing the growing concerns around illegal transactions and lack of regulation in the property market.
According to Olukoyede, many property developers in Nigeria are unknowingly aiding money laundering because they do not take time to check where buyers’ money is coming from.
“From the data we’ve seen and our own investigations, money laundering is alarmingly common in the real estate sector,” he said.
The EFCC chairman urged developers to carry out Know Your Customer (KYC) checks — a process of verifying the identity and source of funds of their customers — even if the law doesn’t force them to do so.
“Even if KYC is not compulsory by law, you should do it for the survival of your business,” he advised.
He issued a clear warning: any developer who sells a property to someone using stolen or illegal money could lose that property if it is traced.
“If someone buys property from you with stolen money and we trace it to you, we will recover it. You can’t hold on to the proceeds of crime,” Olukoyede stated firmly.
He added that part of Nigeria’s problem is that many real estate players don’t understand or follow basic regulatory rules — unlike what is done in developed countries.
“Many developers don’t even understand the regulations. But for your business to thrive, you must play by the rules,” he said.
Still, Olukoyede assured honest developers that the EFCC is not trying to destroy their businesses.
“Our goal is to help your business succeed. A successful business means more jobs for Nigerians, and that means fewer people turning to crime,” he explained.
He encouraged developers to collaborate with the EFCC and see the agency as a partner in growth, not an enemy.
“Our doors are open. We’re not here to shut your business down,” he concluded.
Why This Matters
This message from the EFCC is a strong reminder that while real estate is a booming industry in Nigeria, it can also be a tool for criminals to hide dirty money if not properly managed. Young people, especially those looking to invest in property or start real estate businesses, are urged to understand these issues and follow proper legal procedures.
The EFCC’s warning highlights the need for transparency, honesty, and compliance with regulations to ensure a clean, fair, and thriving real estate market in Nigeria.
