EFCC raises alarm over widespread money laundering in real estate sector

On Wednesday, 6 August 2025, the Economic and Financial Crimes Commission (EFCC) raised concerns about the rising cases of money laundering within Nigeria’s real estate sector, highlighting estate developers as key enablers due to insufficient customer vetting processes.

In a press release shared on EFCC’s social media platforms, the agency’s chairman, Ola Olukoyede, called on real estate developers to conduct thorough background checks on investors to verify the legitimacy of their funds.

Olukoyede made these remarks during a speech titled ‘Tackling Illegal Property Sales, Fake Developers, and Unlicensed Agents’ delivered in Abuja on Wednesday, August 6.

He emphasized the severity of the issue, stating, “Based on data and reports we have gathered, money laundering is highly prevalent among real estate developers and stakeholders in this sector.”

Olukoyede urged developers to prioritize Know Your Customer (KYC) procedures.

He added, “Even if it is not yet mandatory by law, you should implement KYC in the interest of your business and its sustainability.”

He warned that ignoring these checks could have serious repercussions.

“If someone uses stolen funds to purchase property from you, and we trace that money back to you, we will seize it because no one can benefit from the proceeds of crime.”

Highlighting the importance of regulatory compliance, Olukoyede remarked, “The difference between Nigeria and developed countries is compliance with rules, that is what we are missing here.”

He also criticized some developers for operating without a clear understanding of relevant regulations, urging them to always follow the law to ensure their business thrives.

While delivering strong warnings, Olukoyede also pledged support to legitimate players in the industry.

“Our goal is to help you succeed, because when your business grows, you create jobs, reducing the likelihood of financial crimes,” he explained.

He encouraged collaboration between real estate developers and the EFCC, assuring them of open communication and support.

“Our doors are open, and we are not here to see your business fail,” Olukoyede concluded.